Image by DALL·E Pic: Midjourney
Editors' Note: Many Fast News images are stylised illustrations generated by Dall-E. Photorealism is not intended. View as early and evolving AI art!
Vinyl Group's bold move,
Capital raised for growth spurt,
Music's future tuned.
Peloton underwrites $7.6m capital raise for Vinyl Group as music business eyes path to profitability
Vinyl Group has launched a capital raise of A$7.6 million to support recent strategic acquisitions and expedite the company's path to profitability. The capital raise is fully underwritten by Peloton Capital, with Peloton acting as Lead Manager.
Key investors, including Real Wise Group Holdings Pty Ltd (Richard White), Songtradr, Inc., and Robert Millner (ASX: SOL), have already committed A$4.3 million. The capital raise will fund Vinyl Group's most recently announced acquisition, Concrete Playground, which diversifies the revenues of the company's growing media business.
The raise is part of Vinyl Group's strategy to accelerate its path to profitability through the integration of recent acquisitions and continued investment in its industry-leading tech platforms, including Vinyl.com, Vampr, Serenade and Jaxsta. The Institutional Entitlement Offer closes on 18 December 2024, while the Retail Entitlement Offer opens on 24 December 2024 and closes on 15 January 2025.
The Entitlement Offer is non-renounceable, meaning entitlements cannot be traded or transferred, and any unexercised rights will lapse. Vinyl Group has made several strategic acquisitions in 2024, including The Brag Media, Mediaweek, and a binding Heads of Agreement to buy digital city guide Concrete Playground.
The company also acquired London-based Web3 pioneer Serenade and end-to-end events business Funkified Entertainment, launched e-commerce platform Vinyl.com into the UK, and expanded its global advertising business through a commercial agreement with Songtradr.
This A$7.6 million accelerated entitlement offer follows an $11m placement and debt facility in February and the completion of a $5.4m institutional entitlement offer in July.
Vinyl Group CEO, Josh Simons, said: "With this accelerated non-renounceable rights offering, we're ensuring that every shareholder—big or small—can participate on equal terms and benefit from the same opportunities as larger investors. It's a testament to the strength of our community and our shared vision for the future."
