Media and Games Invest announces intention to tap bonds issued in November 2020 by up to EUR 40 Mio. to finance further M&A and growth

Media and Games Invest announces intention to tap bonds issued in November 2020 by up to EUR 40 Mio. to finance further M&A and growth THIS ANNOUNCEMENT IS NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, WITHIN OR TO THE UNITED STATES, AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND, SINGAPORE, SOUTH AFRICA, SOUTH KOREA, SWITZERLAND OR IN ANY OTHER JURISDICTION WHERE SUCH RELEASE, DISTRIBUTION OR PUBLICATION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES IN ACCORDANCE WITH APPLICABLE LAW.

March 22, 2021 - Media and Games Invest plc ("MGI" or the "Company", ISIN: MT0000580101; Ticker M8G; Nasdaq First North Premier Growth Market and Scale Segment Frankfurt Stock Exchange) has evaluated different options to finance accelerated growth and decided to focus on non-equity instruments. Based on strong indicative support from credit investors MGI plans to finance upcoming M&A opportunities by issuing additional bonds of a total up to of EUR 40m in a subsequent tap issue permitted by the framework of the initial bond (SE0015194527) issued in November last year. The proceeds from the increase will be used to facilitate future organic growth, whereas there is a good pipeline of potential acquisitions.

As announced on February 18th, the Board has been evaluating various options over the past weeks to -next to its strong cashflow from operations- further finance the rapid organic and M&A-driven growth. Following strong indicative support from existing and new credit investors combined with good development of the MGI bonds, which are currently trading well above par, the Board has decided to increase the outstanding amount under its existing 2020/2024 bonds.

"Since 2014, we have grown at an average rate of about 45% per year whilst growth is accelerating, and we grew with 67% net revenues in 2020. Also, for 2021 we already had a good start and are planning to further continue this profitable growth path. At the beginning of this year, we have already been very successful on the M&A side with the acquisition of LKQD in the media segment and KingsIsle in the games segment as well as on the organic side with the licensing of further promising mobile games titles and the launch of Trove Korea. In addition to the very strong operational business development, we also have a strong pipeline with a good line-up of very promising acquisition targets, where we expect to be able to close some of them within the next months. With the announced tap issue, we are planning to build a strong war chest to finance such value accretive growth projects.", says Remco Westermann, CEO of MGI.