Business
Proposed acquisition and suspension of trading
Proposed acquisition and suspension of trading.
About this update from Audioboom Group Plc
[{"type":"text","content":"\n \nRNS Number : 6540E Audioboom Group PLC 13 February 2018 \n\nThis announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014 (\"MAR\")\n \n13 February 2018\n \n \nAudioboom Group plc\n \n(\"Audioboom\" or the \"Company\")\n \nProposed acquisition, suspension of trading and trading update\n \nRelated party transaction with Candy Capital Limited\n \n \nThe Board (\"Board\") of Audioboom (AIM: BOOM), the leading spoken word audio on-demand platform, announces the Company's intention to acquire the entire issued share capital of Triton Digital Canada Inc (\"Triton\"), the parent company of Triton Digital, Inc., for a cash consideration of US$185 million, (approximately £134 million), subject to adjustment for normalised working capital (the \"Proposed Acquisition\"). Triton is a leading technology provider to the online audio industry that is headquartered in the USA with offices in six locations. Further information on Triton can be found below. \n \nIn order to fund the Proposed Acquisition and to provide working capital for the Company and its subsidiaries following the Proposed Acquisition (the \"Enlarged Group\"), the Company is proposing to raise approximately £155 million, before expenses, through a proposed placing of new ordinary shares (the \"Proposed Placing\"). Cenkos Securities plc and Zeus Capital Limited have been appointed to act alongside Allenby Capital Limited as joint brokers to the Proposed Placing (the \"Brokers\").\n \nThe Proposed Acquisition would constitute a reverse takeover under rule 14 of the AIM Rules for Companies (the \"AIM Rules\"). The Proposed Acquisition will be subject, inter alia, to shareholder approval, the entering into and completion of a share purchase agreement and raising the funds necessary to finance the Proposed Acquisition via the Proposed Placing. As such, there is no certainty that the Proposed Acquisition will proceed nor any certainty regarding the terms on which it would proceed. \n \nIn conjunction with admission of the enlarged share capital to trading on AIM (\"Admission\"), the Company intends to perform a consolidation of its ordinary shares and change the name of the Company to Triton Digital Group plc.\n \nSuspension of trading\n \nAs the Proposed Ac...