First Day of Dealings

RNS Number : 7536S

Rightster Group PLC

12 November 2013

 

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL

THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER OR INVITATION TO SELL OR ISSUE, OR ANY SOLICITATION OF ANY OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY SHARES IN THE CAPITAL OF THE COMPANY, NOR SHALL IT (OR ANY PART OF IT), OR THE FACT OF ITS DISTRIBUTION, FORM THE BASIS OF, OR BE RELIED ON IN CONNECTION WITH OR ACT AS ANY INDUCEMENT TO ENTER INTO, ANY CONTRACT OR COMMITMENT WHATSOEVER.

12 November 2013

Rightster Group plc

("Rightster", the "Group", or the "Company")

First Day of Dealings

Rightster Group plc (LSE AIM: RSTR), which provides cloud-based services that optimise the distribution and monetisation of live and on-demand video, is pleased to announce the commencement at 08:00 today of dealings in its Ordinary Shares on AIM.  Rightster provides an ''upload once - commercialise everywhere'' solution that extends the reach of live and on-demand video content to web, mobile and connected audiences via customers' own sites, social channels, portals, platforms, online newspapers, magazines and blogs as well as Rightster's multi channel networks (MCNs) on YouTube.

Admission Details:

·     The Company has raised approximately £20.4 million (before expenses) through the placing of 34,083,333 new ordinary shares (the "Placing").

·    The total number of ordinary shares in issue at Admission is 116,372,334, giving the Company a market capitalisation of approximately £69.8 million, based on the placing price of 60 pence per share.

·     Admission and the Placing are expected to provide the Company with working capital to fund its continued operations in building out the Group's network, adding content owners and publishers and to fund continued R&D investment.

·     Admission will also provide the Group with access to capital to support its strategic objectives, if suitable opportunities or ''bolt-on'' acquisitions arise. The Directors believe that Admission and the Placing will enhance the Company's credibility and profile within its market place and will assist the growth in its Business. 

·     Cenkos Securities acted as Nominated Adviser and Broker to the Company.

Overview of the Company:

·     The online video market is large (£9 billion in 2013, according to Informa Telecoms & Media ''OTT Video Revenue Forecasts, 2011-2017'' dated 1 November 2012), but the distribution opportunity for content is fragmented, with very diverse types of organisations owning and producing content.  The audience for these content producers is spread across a large range of sites, including platforms, newspapers, magazines and blogs and is spread across many geographies, time zones and an increasing number and variety of devices.

·     Rightster helps content owners and publishers overcome this fragmentation by matching content to audiences worldwide and monetising content. Through a single software platform, a pre-connected network of partners and a range of advanced services, Rightster allows 360° distribution of content to all types of site, flexible monetisation with a range of revenue models and centralised reporting.  Outsourcing their online video business operations to Rightster can allow media businesses to focus on their core activities, removing the complexity of having to build and manage an in-house online video solution.

·     Rightster is a global business to business video network for 360° distribution, content-sourcing, audience engagement and monetisation. Rightster's software and services make it simple for sports, fashion, news, entertainment and viral rights holders to enhance the value of their video whether on a licenced, ad-funded, direct to consumer or paid placement basis.

·     Rightster's network currently stands at over 750 content owners and over 6,500 publishers. The Group employs approximately 200 staff in 11 offices across 9 countries.

·     Over the last 18 months, Rightster has seen an increase in average monthly video views from approximately 22.5 million in the first half of 2012 to approximately 123.3 million in the second half of 2012 to approximately 160.7 million in the first half of 2013. This represents growth of 447 per cent. on the first half to the second half of 2012 and 30 per cent. on the second half 2012 to the first half of 2013.

·     Rightster was founded in May 2011 by Charles Muirhead with the vision of enabling media businesses to overcome the huge fragmentation in the online video market with a single technology platform for engaging audiences and transacting with optimal efficiency.

Commenting on the successful Placing and Admission to AIM, Charles Muirhead CEO and Founder of Rightster said: "Video is exploding; Informa predicts that the global online video market will be worth $37bn by 2017 but it is still a hugely complex and fragmented market. As the first YouTube Multi-Channel Network (MCN) to IPO, Rightster is positioned at the center of this ecosystem and poised for growth. Rightster's cloud-based services take away the complexity and enable rights holders and creators to focus on producing great video content and leave Rightster to run its video back-office to efficiently reach and engage audiences wherever they are. In the last 18 months we have seen average monthly video views grow six fold.

We expect our growth to come from our focused investment in technology, and we are also in early discussions with a number of possible acquisitions that would accelerate growth through new clients, footprint, expertise and faster monetization."

For further information please contact:

Rightster plc	via Newgate Threadneedle
Charlie Muirhead, CEO
Charl de Beer, CFO
Cenkos Securities	Tel: [phone]
Max Hartley
Newgate Threadneedle	Tel: [phone]
Caroline Evans-Jones/ Josh Royston/ Heather Armstrong

Further information on the Company can be found in the Admission Document, in the investor section of the Rightster website at Rightster.com

 

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