ESPI 34/2020 Signing a significant investment agreement

Management Board of IMS S.A. (“Issuer”) informs that on 20th December this year an investment agreement was signed concerning the acquisition of capital in the subsidiary Closer Music Sp. z o.o. (‘the Company’, ‘Closer Music’), dealing with the development and commercialisation of its own music libraries. The Company will issue and sell to a foreign investor shares representing 4.9% of the share capital (including the issue) for EUR 140 thousand. The estimated valuation of 100% of Closer Music shares is therefore PLN 12.7m. The parties have set the deadline for the realisation of the investment at the end of January 2021. The investor also holds an option to purchase additional 2.1% of shares (the number of shares calculated as at December 2020) for the price of EUR 60,000 over the next two years.

Acquisition of the aforementioned investor, apart from capital for the development of music libraries, is important for further development of Closer Music. This investor – a manager with many years of experience in key positions in the largest European companies in the sensory marketing industry and, consequently, with broad contacts in the industry – will engage in the sale of Closer Music catalogues to companies located in Western Europe.

The Agreement needs to be approved of the Issuer’s Supervisory Board and  the Closer Music General Meeting of Shareholders needs to adopt necessary resolutions for it to be implemented.  In the event of refusal to issue the necessary approval or failure to adopt resolutions, the Agreement shall be automatically terminated, and its provisions shall have no legal effect.