Issue of Equity and Investment

RNS Number : 3749M

YOLO Leisure & Technology PLC

20 January 2016

 

YOLO Leisure and Technology plc

("YOLO" or the "Company")

Placing and further investment in Simplestream

The Company announces that it has conditionally raised through its broker, Peterhouse Corporate Finance Limited, £566,000 before expenses by means of a placing of 37,733,334 new ordinary shares of 1p each in YOLO at a price of 1.5p per share ("Placing Shares").  As part of the placing, the Company will also issue 9,433,334 warrants to placees to subscribe for new ordinary shares in YOLO at 1.8p per share, on the basis of one warrant for every four Placing Shares acquired.

Application will be made for the Placing Shares to be admitted to trading on AIM.  Admission is expected to occur on or around 22 January 2016, apart from 6,666,667 Placing Shares which are being settled on a deferred basis where Admission is expected to occur on or around 5 February 2016.  The new ordinary shares will rank pari passu with the existing ordinary shares.

Following the Admission of all the Placing Shares, the total issued share capital of the Company will be 176,656,092 ordinary shares, each with voting rights. The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company, under the Disclosure and Transparency Rules.

The Directors intend to use the net proceeds of the Placing for investment, general working capital purposes and to further increase the cash reserves of the Company to accelerate the Company's investment strategy.

The Company has also agreed to invest a further £257,384 in Simplestream Limited ("Simplestream") through the acquisition of convertible loan notes in Simplestream ("Loan Notes"). The Loan Notes bear interest at a rate of 8% per annum and are repayable on or before 16 July 2018.  In the event that the Loan Notes are not repaid by that date, or if Simplestream raises at least £500,000 through an issue of equity, the Loan Notes are convertible at the option of the Company into equity shares in Simplestream.  In February 2015, the Company announced that it had invested £550,000 in cash to acquire a 5.1% interest in Simplestream.

Simon Robinson, Chief Executive Officer of YOLO, commented:

"We are delighted to have successfully completed this raise, it demonstrates confidence and support in YOLO's investment strategy and maintains our positive momentum.  It is our intention to invest into further opportunities as they arise that represent good returns for shareholders.

"We will be investing into Simplestream and its subsidiary, TVPlayer, in the form of a loan note alongside other existing shareholders, including co-investor Beringea.  Our investment is expected to enable Simplestream to better service international TV channels, including the delivery of a global online video streaming service for an existing customer, as well as invest in further content and platform distribution for TVPlayer.

"Simplestream is a leading B2B provider of live video streaming and live-2-vod solutions to television channels, having developed cloud-based technology which greatly reduces the costs and complexity normally associated with delivering TV channels online. Simplestream is profitable with all clients having signed multi-year software licensing agreements.

"TVPlayer is an advertising funded online television service offering live streaming of 60+ Free-to-Air channels from Freeview and Freesat across desktop, mobile, tablet and Smart TV. The service is in regular use in over 500,000 UK homes. TVPlayer Plus is the company's newly launched Pay TV proposition, offering 25 premium channels from Discovery, Turner, A+E, UKTV, Sony and FOX for £4.99 per month. TVPlayer Plus is the first service of its kind to offer these premium channels in the UK without a contract. Our investment will support the licensing of additional content and provide an initial marketing budget."

--ENDS-

For further information please contact:

YOLO Leisure and Technology plc
Simon Lee Robinson	[e-mail]
Cairn Financial Advisers LLP
Sandy Jamieson / Emma Earl	Tel: [phone]
Peterhouse Corporate Finance Limited (Sole broker)
Duncan Vasey / Lucy Williams	Tel: + 44 20 7220 9797
Walbrook PR Ltd	Tel: [phone] or [e-mail]
Paul McManus	Mob: [phone]
Sam Allen	Mob: [phone]

 

END

 

 

MSCEANFNFDAKEFF