3rd Aug 2022 10:46
(Alliance News) - Zinc Media Group PLC on Wednesday said it agreed to buy The Edge Picture Co Ltd, a UK-based brand and corporate film production company, for an initial GBP1.2 million.
Shares in Zinc fell 8.6% at 98.25 pence on Wednesday morning in London.
The Edinburgh-based content creation company explained the initial consideration comprises of GBP1.56 million in cash and GBP540,000 through the issue of 540,000 Zinc shares at 100 pence each.
A further GBP3.9 million, conditional on the performance of The Edge over the next three years, will be satisfied through a combination of cash, share issues and/or the issue of loan notes.
Zinc on Wednesday announced a fundraise to finance the acquisition. The firm raised GBP5.0 million from a placing of 5.0 million shares, also at 100p, and it said will raise up to GBP250,000 more from a retail offer at the same price.
The Edge reported GBP500,000 in pretax profit on GBP8.2 million in revenue in 2021. At June 30, The Edge booked GBP8 million in revenue for 2022.
The firm said the acquisition will add scale to the existing group, support long-term profitability and present organic revenue growth opportunities. It expects The Edge to be earnings accretive in the current and future financial years.
By Heather Rydings; [email protected]
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