Electric Guitar Announces Acquisition of Mymyne, Seeks Improvement in Software Capabilities

August 09, 2024 02:11 PM BST | By Team Kalkine Media
 Electric Guitar Announces Acquisition of Mymyne, Seeks Improvement in Software Capabilities
Image source: shutterstock

Electric Guitar (LSE:ELEG) is pleased to announce the next step in its buy-and-build strategy with the share-for-share acquisition of Mymyne Limited (Mymyne), a developer of data-related software solutions and provider of sales and marketing services. This acquisition aims to enhance Electric Guitar's software capabilities and achieve significant synergies and cost savings.

Shareholder Approval Required

The acquisition is subject to approval by Electric Guitar's shareholders in accordance with section 190 of the Companies Act 2006. A general meeting to vote on this transaction will be held on 27 August 2024.

Operational Update and New Appointments

In addition to the acquisition announcement, Electric Guitar provided an operational update, including the appointment of a capital markets consultant and the issuance of new ordinary shares to professional advisers and consultants.

About Mymyne

Mymyne specializes in marketing technology, offering data-related software solutions and services for the digital marketing sector. Its intellectual property includes:

  • First-Party Data Collection Website: Collects data in exchange for discount vouchers.
  • Situational Targeting: A segmentation tool for customer intent analysis and digital advertising.
  • Peprr: A tool for digital traffic and website optimization.

Background and Rationale for Acquisition

Prior to Electric Guitar's reverse takeover of 3radical Ltd ("3radical") on 3 May 2024, Mymyne had been providing sales and marketing services to 3radical. The 3radical Contract, which runs until September 2024, was remunerated in part with Electric Guitar shares. Following the appointment of Jeremy Saul as Managing Director of 3radical, it was deemed efficient for Mymyne to be integrated into Electric Guitar to streamline operations and reduce costs.

Terms of the Acquisition

The total consideration for the acquisition is up to approximately £154,000, payable in two tranches through the issuance of up to 21,026,186 new ordinary shares, representing 9.4% of Electric Guitar's current issued share capital.

  • Initial Consideration Shares: 9,834,521 shares to be issued upon completion, valued at approximately £72,000.
  • Balance of Consideration Shares: 11,191,665 shares to be issued subsequently.

Additionally, Mymyne intends to place its shareholding in Electric Guitar with investors shortly after the announcement, with the proceeds to be paid to Electric Guitar upon completion of the acquisition.

 


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