Business
Proposed Strategic Investment
Proposed Strategic Investment.
About this update from Zoo Digital Group Plc
[{"type":"text","content":"\n RNS Number : 3023O Zoo Digital Group PLC 28 June 2010 \n \n\n28 June 2010\nZOO Digital Group plc\n(\"ZOO\" or the \"Company\" or the \"Group\")\n \n Proposed Strategic Investment in the Company and Commercial Relationship Agreement\nZOO, the provider of software and software-led services for the filmed entertainment market, is pleased to announce that the Company has formed a strategic relationship by executing a subscription agreement (the \"Agreement\") with John Henry Holdings Inc., a subsidiary of Multi Packaging Solutions, Inc. (\"MPS\"), a US headquartered value-added print-based packaging solutions company.\nZOO and MPS believe that the Agreement is attractive to both companies as it should enable both parties to work closely together and help ZOO to develop new markets and applications for its proprietary software solutions for printed materials. \nUnder the terms of the Agreement, MPS will make a strategic investment of £859,456 in the Company. This comprises of the allotment and issue of 2,148,642 new ordinary shares of 15 pence each in the Company to MPS, at a subscription price of 40 pence per share (the \"Subscription\") which is equal to approximately 9.1 per cent. of the Company's issued share capital as enlarged by the Subscription. It also comprises of, subject to the approval of the Company's shareholders, a proposed issuance of warrants to subscribe for up to a maximum aggregate number of 2,148,642 new ordinary shares of 15 pence each in the Company at a price of 50 pence per share (together the \"Investment\"). The net proceeds of the Investment will be used to provide working capital for the growth of the business. \nRationale for the Investment\nZOO has developed a market leading proposition for the production of printed materials in the entertainment industry. In developing its offering to this industry the board of directors of ZOO (the \"Board\") has become aware that its proprietary software could have a number of complementary applications in other sectors. MPS has relationships with a number of large companies outside of the entertainment industry that have products that require printed packaging materials that would benefit in the standardisation and streamlining of production and that need to be localised for distribution in multiple geographical markets. The Boa...