Vinyl Group Secures $7.65M to Fuel Concrete Playground Acquisition

Strong Capital Raise Completes Retail Entitlement Offer

Vinyl Group Ltd (ASX: VNL), Australia's only publicly listed music company, announced the successful completion of its retail entitlement offer, raising approximately A$7.65 million before costs. This fully underwritten pro-rata accelerated non-renounceable entitlement offer was led by Peloton Capital and included both institutional and retail components, with the retail portion closing on 15 January 2025.

The retail entitlement offer saw a 58% take-up rate from existing shareholders, reflecting solid confidence in Vinyl Group’s strategic vision. While retail investors applied for approximately 1.4 million new shares, representing A$0.14 million, the shortfall of 32.4 million shares was fully subscribed under the underwriting agreement, ensuring the total raise met its target.

Strategic Use of Funds: Acquisition and Cash Reserves

The capital raised will primarily fund the completion of Vinyl Group’s acquisition of Concrete Playground Pty Ltd, a move that expands the company’s footprint in the media and entertainment space. Additionally, the funds will replenish cash reserves to support previous acquisitions and provide working capital, positioning Vinyl Group for sustained growth and operational stability.

CEO and Director Josh Simons highlighted the significance of the shareholder backing, stating that the strong participation validates the company’s strategy. He emphasized that Vinyl Group’s diverse portfolio, including platforms like Vinyl.com, Vampr, Jaxsta, and media assets such as Mediaweek and The Brag Media, creates multiple revenue streams and growth opportunities.

Market Implications and Next Steps

New shares issued under the retail entitlement offer will rank equally with existing ordinary shares and are set to commence trading on 23 January 2025. The successful capital raise not only strengthens Vinyl Group’s balance sheet but also signals market confidence in its ability to integrate acquisitions and drive profitability.

Investors will be watching closely how the Concrete Playground acquisition complements Vinyl Group’s existing assets and whether it accelerates the company’s path to profitability. The company’s ability to leverage its technology platforms and media properties to create synergies will be critical in the coming quarters.