Shareholder Funding

26 October 2018

7digital Group plc

("7digital" or "the Company")

Shareholder Funding

7digital (AIM:7DIG), the global leader in B2B end-to-end digital music solutions, announces that, further to its announcement on 8 October 2018 regarding shareholder funding, it has signed agreements with 3 shareholders to provide an aggregate facility of £1.5 million ("Facility"). The Facility is on standard market terms and is convertible into ordinary shares at certain specified times prior to maturity in December 2019. The price at which the principal and interest under the Facility may be converted into new ordinary shares is calculated by reference to the volume weight average price of the existing ordinary shares. The maximum number of new ordinary shares which may be issued pursuant to the Facility is 58,157,529 ordinary shares.

The funds provided will be used for working capital as the Company continues to move to being in operating profit and positive cash flow by the end of the current financial year.

Related Party Transactions

Juke Entertainment, which at the date of this Announcement holds 48,238,955 Ordinary Shares (representing approximately 12.1 per cent. of the issued share capital of the Company), has entered into an agreement with the Company to provide £0.75 million of the aggregate £1.5 million facility. This is deemed to be a related party transaction for the purposes of Rule 13 of the AIM Rules (the "24-7 Related Party Transaction").

The Directors consider, having consulted with the Company's Nominated Adviser, Arden Partners, that the terms of the 24-7 Related Party Transaction are fair and reasonable in so far as the Company's shareholders are concerned.

Simon Cole, 7digital CEO, commented:

"I am pleased to see such significant shareholder support for the business. The loan finance allows us to cover the short term costs of our restructuring. This restructuring takes an annual equivalent £5m of costs out of the business, consolidates our technology platforms after the acquisitions of the last two years, and should take us to the profitability and cash positivity which has been our aim for the last 18 months."

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About 7digital

7digital is the global leader in B2B end-to-end digital music solutions. The core of its business is the provision of robust and scalable technical infrastructure and extensive global music rights used to create music streaming and radio services for a diverse range of customers - including consumer brands, mobile carriers, broadcasters, automotive systems, record labels and retailers. 7digital also offers radio production and music curation services, editorial strategy and content management expertise.

7digital fosters industry growth and innovation by simplifying access to music for clients such as MediaMarktSaturn, Onkyo and musical.ly. From years of being the largest independent producer of programming for the BBC and powering services for partners like Panasonic, TDC and Fender, 7digital is perfectly positioned to lead innovation at the intersection of digital music and next-generation radio services.