7DIG 7digital Group Plc

TIDM7DIG

RNS Number : 8004U

7digital Group PLC

30 March 2023

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION .

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION NO . 596/2014 (AS INCORPORATED INTO UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 AS AMED BY VIRTUE OF THE MARKET ABUSE (AMMENT) (EU EXIT) REGULATIONS 2019) . UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN .

For immediate release

30 March 2023

RECOMMED CASH OFFER

for

7DIGITAL GROUP PLC ( "7DIGITAL")

by

SONGTRADR, INC. ( "SONGTRADR")

IMPLEMENTED BY MEANS OF A SCHEME OF ARRANGEMENT

UNDER PART 26 OF THE COMPANIES ACT 2006

Scheme of Arrangement becomes Effective

The boards of directors of 7digital and Songtradr are pleased to announce, further to the Company's announcement of 28 March 2023, that the Court had sanctioned the Scheme, that a copy of the Court Order sanctioning the Scheme was today delivered to the Registrar of Companies, and, accordingly, the Scheme has now become Effective in accordance with its terms. Therefore, the recommended cash offer by Songtradr for the entire issued and to be issued ordinary share capital of 7digital has now also become Effective in accordance with its terms.

Under the terms of the Scheme, the consideration of 0.695 pence per 7digital Share due to Scheme Shareholders will be settled (in the case of Scheme Shares held in uncertificated form, by CREST accounts being credited) or despatched (in the case of Scheme Shares held in certificated form by cheques being despatched) as soon as practicable after today's date and in any event within the next 14 days, and therefore by no later than 13 April 2023.

Trading on AIM of, and dealings, settlements and transfers in, 7digital Shares were suspended with effect from 7.30 a.m. (London time) today. It is expected that cancellation of the admission to trading on AIM of, and cessation of dealings in, 7digital Shares will be effective from 7.00 a.m. (London time) on 31 March 2023.

As a result of the Scheme having become Effective, share certificates in respect of 7digital Shares have ceased to be valid documents of title and entitlements to 7digital Shares held in uncertificated form in CREST are being cancelled.

Unless otherwise defined herein, capitalised terms used in this announcement shall have the meanings given to them in the Scheme Document.

Enquiries :

7digital c/o +44 (0)20 4582 3500

Paul Langworthy, CEO

Strand Hanson Limited (Financial Adviser and +44 (0)20 7409 3494

Nominated Adviser to 7digital)

James Dance

Matthew Chandler

Richard Johnson

James Harris

Gracechurch Group (Financial PR to 7digital ) +44 (0)20 4582 3500

Harry Chathli

Claire Norbury

Songtradr

+1 424 744 8190

Paul Wiltshire, CEO

Liberum Capital Limited (Financial Adviser to Songtradr) +44 (0)20 3100 2000

Tim Medak

Kate Bannatyne

Cara Murphy

Further information

Liberum Capital Limited ("Liberum"), which is authorised and regulated in the UK by the FCA, is acting as financial adviser to Songtradr and no-one else in connection with the Offer and other matters described in this announcement and will not be responsible to anyone other than Songtradr for providing the protections afforded to clients of Liberum nor for providing advice in connection with the Offer and other matters referred to herein. Neither Liberum nor any of its affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Liberum in connection with this announcement, any statement contained herein, the Offer or otherwise.

Strand Hanson Limited ("Strand Hanson"), which is authorised and regulated in the UK by the FCA, is acting as nominated adviser and financial adviser to 7digital and no one else in connection with the Offer and other matters described in this announcement and will not be responsible to anyone other than 7digital for providing the protections afforded to clients of Strand Hanson nor for providing advice in connection with the Offer and other matters referred to herein. Neither Strand Hanson nor any of its affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Strand Hanson in connection with this announcement, any statement contained herein, the Offer or otherwise.

This announcement is for information purposes only and is not intended to and does not constitute, or form part of, an offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to the Offer or otherwise, nor shall there be any sale, issuance or transfer of securities of 7digital in any jurisdiction in contravention of applicable law. The Offer is being implemented solely by means of the Scheme Document which contains the full terms and conditions of the Offer. This announcement does not constitute a prospectus, prospectus equivalent document or an exempted document.

If you are in any doubt about the contents of this announcement or the action you should take, you are recommended to seek your own independent financial advice immediately from your stockbroker, bank manager, solicitor, accountant or other independent financial adviser duly authorised under the Financial Services and Markets Act 2000 (as amended) if you are resident in the United Kingdom or, if not, from another appropriately authorised independent financial adviser in the relevant jurisdiction .

Overseas Shareholders

The release, publication or distribution of this announcement in or into jurisdictions other than the UK may be restricted by law and therefore any persons who are subject to the law of any jurisdiction other than the UK should inform themselves of, and observe, any applicable legal or regulatory requirements. Any failure to comply with such requirements may constitute a violation of the securities laws of any such jurisdiction. To the fullest extent permitted by applicable law, the companies and persons involved in the Offer disclaim any responsibility or liability for the violation of such restrictions by any person. This announcement has been prepared in accordance and for the purpose of complying with English law, the Takeover Code, the AIM Rules, the Market Abuse Regulation and the Disclosure Guidance and Transparency Rules and information disclosed may not be the same as that which would have been prepared in accordance with the laws of jurisdictions outside of England.

The availability of the Offer to 7digital Shareholders who are not resident in and citizens of the UK may be affected by the laws of the relevant jurisdictions in which they are located or of which they are citizens. Persons who are not resident in the UK should inform themselves of, and observe, any applicable legal or regulatory requirements of their jurisdictions. In particular, the ability of persons who are not resident in the United Kingdom to participate in the Offer may be affected by the laws of the relevant jurisdictions in which they are located. Any failure to comply with the applicable restrictions may constitute a violation of the securities laws of any such jurisdiction. To the fullest extent permitted by applicable law, the companies and persons involved in the Offer disclaim any responsibility or liability for the violation of such restrictions by any person.

Unless otherwise determined by Songtradr or required by the Takeover Code, and permitted by applicable law and regulation, the Offer is not being made available, directly or indirectly, in, into or from a Restricted Jurisdiction where to do so would violate the laws in that jurisdiction. Accordingly, copies of this announcement and any formal documentation relating to the Offer are not being, and must not be, directly or indirectly, mailed or otherwise forwarded, distributed or sent in or into or from any Restricted Jurisdiction and persons receiving such documents (including, without limitation, agents, custodians, nominees and trustees) must not mail or otherwise forward, distribute or send them in or into or from any Restricted Jurisdiction.

Further details in relation to Overseas Shareholders are contained in the Scheme Document.

Notice to US investors in 7digital

The Offer relates to the shares of an English company and is being made by means of a scheme of arrangement provided for under English company law. A transaction effected by means of a scheme of arrangement is not subject to the tender offer or proxy solicitation rules under the US Exchange Act. Accordingly, the Offer is subject to the disclosure requirements and practices applicable in the UK to schemes of arrangement which differ from the disclosure requirements of the US tender offer and proxy solicitation rules. The financial information included in the Scheme Document has been prepared in accordance with generally accepted accounting principles of the United Kingdom and thus may not be comparable to financial information of US companies or companies whose financial statements are prepared in accordance with generally accepted accounting principles in the United States.

It may be difficult for US holders of 7digital Shares to enforce their rights and any claim arising out of the US federal laws, since 7digital is located in a non-US jurisdiction, and some or all of 7digital's officers and directors may be residents of a non-US jurisdiction. US holders of 7digital Shares may not be able to sue a non-US company or its officers or directors in a non-US court for violations of the US securities laws. Further, it may be difficult to compel a non-US company and its affiliates to subject themselves to a US court's judgement.

To the extent permitted by applicable law, in accordance with normal UK market practice and pursuant to Rule 14e-5(b) of the US Exchange Act, Songtradr, or its nominees or brokers (acting as agents), may from time to time make certain purchases of, or arrangements to purchase, 7digital Shares outside of the US, other than pursuant to the Offer, until the date on which the Offer becomes Effective, lapses or is otherwise withdrawn. These purchases may occur either in the open market at prevailing prices or in private transactions at negotiated prices.

US 7digital Shareholders also should be aware that the transaction contemplated herein may have tax consequences in the US and, that such consequences, if any, are not described herein. US 7digital Shareholders are urged to consult with legal, tax and financial advisers in connection with making a decision regarding this transaction.

Cautionary note regarding forward-looking statements

This announcement (including any information incorporated by reference in this announcement), oral statements made regarding the Offer, and other information published by Songtradr and 7digital contain statements which are, or may be deemed to be, "forward-looking statements". Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Songtradr and 7digital about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements.

The forward-looking statements contained in this announcement include statements relating to the expected effects of the Offer on Songtradr and 7digital (including their future prospects, developments and strategies), the expected timing and scope of the Offer and other statements other than historical facts. Often, but not always, forward-looking statements can be identified by the use of forward-looking words such as "plans", "expects" or "does not expect", "is expected", "is subject to", "budget", "projects", "strategy", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Although Songtradr and 7digital believe that the expectations reflected in such forward-looking statements are reasonable, neither Songtradr nor 7digital can give assurance that such expectations will prove to be correct. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements.

These factors include, but are not limited to: the ability to complete the Offer; the ability to obtain any requisite regulatory and shareholder approvals and the satisfaction of other Conditions on the proposed terms and schedule; future market conditions, changes in general economic and business conditions, the behaviour of other market participants, the anticipated benefits from the proposed transaction not being realised as a result of changes in general economic and market conditions in the countries in which Songtradr and 7digital operate, weak, volatile or illiquid capital and/or credit markets, changes in tax rates, interest rate and currency fluctuations, the degree of competition in the geographic and business areas in which Songtradr and 7digital operate and changes in laws or in supervisory expectations or requirements. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements. Such forward-looking statements should therefore be construed in light of such factors. Neither Songtradr nor 7digital, nor any of their respective associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur. You are cautioned not to place any reliance on these forward-looking statements. Other than in accordance with their legal or regulatory obligations, neither Songtradr nor 7digital is under any obligation, and Songtradr and 7digital expressly disclaim any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Publication of this announcement on websites

A copy of this announcement will be made available, subject to certain restrictions relating to persons resident in Restricted Jurisdictions, on 7digital's website at https://www.7digital.com/investors/ and on Songtradr's website at https://www.songtradr.com/investors/ by no later than 12 noon (London time) on the Business Day following this announcement, in accordance with Rule 26.1 of the Takeover Code.

For the avoidance of doubt, the contents of these websites are not incorporated by reference and do not form part of this announcement.

Requesting hard copy documents

Any person entitled to receive a copy of documents, announcements and information relating to the Offer is entitled to receive such documents in hard copy form free of charge. A person may also request that all future documents, announcements and information in relation to the Offer are sent to them in hard copy form. Hard copies of such documents, announcements (including this announcement), and information will not be sent unless requested.

In accordance with Rule 30.3 of the Takeover Code, 7digital Shareholders, persons with information rights, participants in the 7digital Share Plan and the holder of the Warrants may request a hard copy of this announcement by contacting the Receiving Agent, Neville Registrars Limited, on 0121 585 1131 from within the UK or on +44 (0) 121 585 1131 if calling from outside the UK. Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. Lines are open between 9.00 a.m. and 5.00 p.m., Monday to Friday excluding public holidays in England and Wales or by submitting a request in writing to the Receiving Agent at Neville Registrars Limited, Neville House, Steelpark Road, Halesowen, B62 8HD. Copies of this announcement and any document or information incorporated by reference into this announcement will not be provided unless such a request is made. Such persons may also request that all future documents, announcements and information to be sent to them in relation to the Offer should be in hard copy form.

Time

All times shown in this announcement are London times, unless otherwise stated.

Person responsible

The person responsible for arranging the release of this announcement on behalf of 7digital is Paul Langworthy.

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March 30, 2023 07:00 ET (11:00 GMT)