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Reach4Entertainment (R4E)

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Monday 12 February, 2018

Reach4Entertainment

Media Buying Agreement

RNS Number : 5199E
Reach4Entertainment Enterprises PLC
12 February 2018
 

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.

12 February 2018

reach4entertainment enterprises plc

('r4e', the 'Company' or the 'Group')

Media Buying Agreements

r4e, the transatlantic media and entertainment marketing company, is pleased to announce that its subsidiaries, Dewynters Limited ("Dewynters") and Spot and Company of Manhattan, INC. ("SpotCo") have  entered into media buying agreements with, respectively, Miroma International Limited and Miroma Outcomes LLC (collectively, "Miroma") (the "Agreements").  Miroma are companies wholly owned by Miroma Holdings Limited, a company of which Marc Boyan, the CEO of r4e, is a director and the controlling shareholder. The Miroma group operates a successful media trading business which works with brands, media agencies and media owners to enable brand owners to extract additional value from their marketing budgets. Marc Boyan founded Miroma International Limited in 2003.

As announced by the Company on 4 December 2017, as part of the recent operational review of the business, the Board has been reviewing the Company's media suppliers and partners and has determined that it is in the best interests of the Company and its clients for Dewynters and SpotCo to enter into agency referral and media trading services agreements with Miroma.  Under the terms of the Agreements, Miroma will provide Dewynters and SpotCo with media buying and trading services for their clients on a first refusal basis, save for in certain limited circumstances and provided that the terms achievable by Miroma are competitive. 

The Agreements are expected to result in efficiencies in media buying for Dewynters and SpotCo, through the expertise and purchasing power of Miroma, for the benefit of r4e and its clients, as well as providing additional referral income for r4e based on its media spend with Miroma. The Agreements were entered into on an arm's-length basis and negotiated and approved by independent directors of r4e.

The Agreements were entered into on 9 February 2018 and have an effective date of 2 January 2018. The Agreements have an initial term of one year and will continue thereafter unless terminated by either party, providing three months' notice. The Agreements will be reviewed annually in good faith by the Directors of r4e that are independent of Marc Boyan.

The entering into of the Agreements by Dewynters and SpotCo constitute related party transactions pursuant to rule 13 of the AIM Rules for Companies due to Marc Boyan's interest in Miroma. Accordingly, the directors of r4e that are independent of Marc Boyan consider, having consulted with the Company's nominated adviser, Allenby Capital Limited, that the terms of the Agreements are fair and reasonable insofar as the Company's shareholders are concerned.

 

Enquiries:

reach4entertainment enterprises plc              


Marc Boyan, Chief Executive Officer               

+44 (0) 20 7968 1655

 

Allenby Capital (AIM Nominated Adviser and Broker)  

+44 (0) 20 3328 5656

Jeremy Porter/James Reeve


 

Novella Communications (Financial PR)  

+44 (0) 20 3151 7008

Tim Robertson   

Toby Andrews                                               


 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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