Vinyl Group has successfully raised $7.65 million through a fully underwritten retail entitlement offer, reinforcing shareholder confidence and funding a key acquisition to bolster its music ecosystem portfolio.
- Raised $7.65 million via retail entitlement offer
- Offer fully underwritten by Peloton Capital
- Funds to complete acquisition of Concrete Playground Pty Ltd
- 58% shareholder take-up rate signals strong support
- New shares to commence trading on 22 January 2025
Strong Capital Raise Completes
Vinyl Group Ltd (ASX, VNL), Australia's only ASX-listed music company, has successfully closed its retail entitlement offer, raising approximately A$7.65 million. This capital injection follows an institutional component that raised $4.26 million, bringing the total proceeds from the fully underwritten offer to a substantial sum aimed at strategic growth.
Backing from Shareholders and Underwriter
The retail entitlement offer, priced at 10 cents per new share, attracted a 58% take-up from existing shareholders, a clear endorsement of Vinyl Group’s strategic direction. The offer was fully underwritten by Peloton Capital, providing certainty around the capital raise and mitigating risk for the company.
Funding Growth and Acquisition
Proceeds from the entitlement offer will be used primarily to complete the acquisition of Concrete Playground Pty Ltd, a move that expands Vinyl Group’s footprint in the music and media landscape. Additionally, the funds will replenish cash reserves to support previous acquisitions and provide working capital, positioning the company for operational stability and future opportunities.
Strategic Positioning in the Music Ecosystem
Vinyl Group’s portfolio spans ecommerce, social networking for creators, music credits databases, and media publishing, making it a unique player in the music industry. The acquisition of Concrete Playground is expected to complement these assets, potentially enhancing content offerings and audience reach.
Looking Ahead
New shares issued under the retail entitlement offer, including shortfall shares, are set to be allotted on 21 January 2025 and will begin trading on 22 January. CEO Josh Simons highlighted the strong shareholder support as validation of the company’s strategy and expressed confidence in delivering value and progressing toward profitability.
Bottom Line?
With fresh capital secured and a key acquisition underway, Vinyl Group is poised to amplify its influence across the music media landscape.
Questions in the middle?
- How will the Concrete Playground acquisition integrate with Vinyl Group’s existing assets?
- What impact will the new shares have on Vinyl Group’s share price and liquidity?
- Can Vinyl Group sustain shareholder enthusiasm in future capital raises?