Business
Podcast Contract Renewal
Podcast Contract Renewal.
About this update from Audioboom Group Plc
[{"type":"text","content":"\n \nRNS Number : 6563Z Audioboom Group PLC 14 January 2020 \n\n Audioboom Group plc\n(\"Audioboom\", the \"Group\" or the \"Company\")\n \nContract renewal of one of Audioboom's most popular entertainment podcasts\n \nFurther use of podcast content funding guarantee arrangement \n \nIssue of warrants with exercise price of £3.30 per share\n \nThe Board of Audioboom (AIM: BOOM), the leading global podcast company, is pleased to announce that the Company has renewed an exclusive sales and distribution contract with one of Audioboom's most popular entertainment podcasts for 24 months, which includes the opportunity to work with the content partner on further podcast projects together. Over the past year this podcast has been downloaded more than 140 million times, and during 2019 Audioboom sold more than 98% of the available advertising inventory against this podcast.\n \nThe Company's content funding guarantee facility announced on 17 June 2019 with SPV Investments Ltd (the \"SPV\") - a special purpose vehicle owned equally by Michael Tobin, the Company's Chairman, and Candy Ventures sarl, the Company's largest shareholder - will be used to provide a guarantee of US$1.75 million in relation to this contract renewal.\n \nThe SPV was formed to provide minimum revenue guarantees up to an aggregate of US$4 million to certain leading new content providers or, on contract renewal, to existing content partners of the Company. This secures the minimum guaranteed advertising revenue share payable to the content partners pursuant to their commercial agreements with Audioboom without tying up the Company's working capital. The provision of guarantees remains very much an exception when negotiating terms with content partners and the guarantees from the SPV will be used only to secure leading, high profile, high revenue producing podcasts.\n \nThe first use of the SPV was announced on 17 June 2019 and was for a guarantee of US$1 million in relation to the renewal of another of Audioboom's most popular entertainment podcasts. Subsequent to this date, payments made by Audioboom to the content partner have resulted in a reduction in this guarantee such that a guarantee of approximately US$0.5 million remains outstanding. Following the second use of the SPV set out above,...