14th Jan 2020 12:33
(Alliance News) - Audioboom Group PLC on Tuesday said it has renewed an exclusive sales & distribution contract with an undisclosed entertainment podcasts for 24 months.
Audioboom said the contract includes the opportunity to work with an unnamed content partner on further podcast projects.
The AIM-listed podcast company said its content funding guarantee facility with SPV Investments Ltd will be used to provide a guarantee of USD1.8 million in relation to this contract renewal.
The facility was secured in mid-June last year, with SPV being an investment vehicle of Audioboom's Chair Michael Tobin and its largest shareholder Candy Ventures Sarl. SPV was formed to provide minimum revenue guarantees up to an aggregate of USD4 million to some new content providers or, on contract renewal, to existing content partners of Audioboom.
Under the terms of the SPV facility, Audioboom will grant 43,750 warrants to Tobin and Candy Ventures, which will be split equally. The exercise price of these warrants will be GBP3.30 per share, with such warrants being exercisable for five years from grant.
A total of 68,750 warrants have been issued pursuant to the guarantee facility to-date, with the maximum number of warrants being capable of issue in this regard being 100,000.
Audioboom shares were trading 4.5% higher in London on Tuesday at 237.62 pence each.
By Evelina Grecenko; [email protected]
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