Business
Acquisition of assets from Social Chain AG
Acquisition of assets from Social Chain AG.
About this update from Digitalbox Plc
[{"type":"text","content":"\n\n1 August 2023\nDigitalbox plc\n(\"Digitalbox\", the \"Company\" or the \"Group\")\n \nAcquisition of the assets of Media Chain Group Limited\nDigitalbox plc (AIM: DBOX), the mobile-first digital media business, which owns Entertainment Daily, The Daily Mash, The Tab, and The Poke is pleased to announce it has exchanged contracts (the \"Exchange\") to acquire the digital assets of 99 Problems, Student Problems and The Life Network Shopping from Media Chain Group Limited (part of \"Social Chain AG\") for a total consideration of $800,000 (the \"Consideration\", together the \"Acquisition\"). The Acquisition is subject to completion of satisfactory testing by Digitalbox, as set out below, and is expected to be immediately earnings enhancing on completion.\n \nAbout Media Chain Group Limited\n \nMedia Chain Group Limited was previously part of the broader Social Chain business established in Manchester in 2014. Social Chain became part of The Social Chain AG business in 2019 and operated in two divisions, an agency that was sold in the spring of 2023 and the media division (Media Chain Group Limited) that houses 20+ social pages with over 60m followers.\n \nThe Acquisition\n \nThe transaction provides Digitalbox with the opportunity to extend its audience reach through the 99 Problems 10m Facebook followers, Student Problems 1.4m Tik Tok followers and the The Life Shopping Network 1m Facebook followers. The combined follower bases will more than double the number currently owned by Digitalbox at approximately 8m Facebook followers.\n \nCompletion of the Acquisition is conditional upon the satisfactory testing, by Digitalbox, through a licence agreement which is in operation until the end of November 2023. The total Consideration for the Acquisition to be paid is $800,000, with $79,000 payable immediately on Exchange as a non-refundable deposit to trigger the license term through a single $1,000 fee, and a further $720,000 payable on completion - which is anticipated to be within two to five months from the date of Exchange - through a deferred payment of $520,000 in cash and $200,000 in Digitalbox ordinary shares (\"Completion\").\n \nThe Consideration will be funded from the Group's existing cash resources, which at 28 July 2023 were approximately £2.4 million. The Acquisition is being underta...