Reach4Entertainment Enterprises PLC Renewal of Media Trading Agreements (0168X)

TIDMR4E

RNS Number : 0168X

Reach4Entertainment Enterprises PLC

25 April 2019

25(th) April 2019

reach4entertainment enterprises plc

("r4e" or "the Company" or "the Group")

Renewal of Media Trading Agreements

reach4entertainment enterprises plc (AIM: R4E), the entertainment marketing communications group, is pleased to announce that its subsidiaries, Dewynters Limited ("Dewynters") and Spot and Company of Manhattan, INC. ("SpotCo") have renewed their existing media buying agreements with, respectively, Miroma International Limited and Miroma Outcomes LLC (collectively, "Miroma") (the "Agreements"). In addition, the media buying agreements have been extended to Agency Press Limited (trading as "Sold Out") and Wake the Bear Limited ("Wake the Bear"), in order to drive additional value to the respective agencies and their client bases (the "New Agreements").

In their previous form, as announced on 12 February 2018, the Agreements legislated for the provision of media trading services from Miroma to Dewynters and SpotCo for which Dewynters and SpotCo were compensated via a referral fee.

To allow for additional trading opportunities by these parties, each contract has been amended to allow for the provision of Ancillary Services by Dewynters, SpotCo, Sold Out and Wake the Bear to Miroma or its client base (the "Amended Agreements"). These Ancillary Services cover the scope of works that Dewynters, SpotCo, Sold Out and Wake the Bear provide to its core client base today. These services include media planning, media buying, media inventory trading services, creative services content production services, strategy and website design. The Agreements have been amended so that the provision of these services would be based on the respective agency's rate card, thereby ensuring that Miroma would be dealt with in the same way as any third party client.

Miroma are companies wholly owned by Miroma Holdings Limited, a company of which Marc Boyan, the CEO of r4e, is both a director and the controlling shareholder. The Miroma group operates a successful media buying business which works with brands, media agencies and media owners to enable brand owners to extract additional value from their marketing budgets.

The Amended Agreements and the New Agreements are expected to result in efficiencies in media buying for Dewynters, SpotCo, Sold Out and Wake the Bear, 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. Commission rates paid by Miroma to r4e are calculated on a case by case basis, however any rates applied will always fall within pre-defined parameters, which have been agreed and set by the Board and are based on market rates paid by Miroma to independent third parties. The Amended Agreements and the New Agreements have been entered into on an arm's-length basis and negotiated and approved by the independent directors of r4e.

The Amended Agreements and the New Agreements will be reviewed annually by the relevant counterparty and will continue unless terminated by either counterparty, providing three months' notice. The Amended Agreements and the New Agreements will also be reviewed annually by the Directors of r4e that are independent of Marc Boyan.

The entering into of the Amended Agreements by Dewynters, SpotCo and the New Agreements by Sold Out and Wake the Bear constitute related party transactions pursuant to Rule 13 of the AIM Rules for Companies due to Marc Boyan's interest in Miroma. Accordingly, the independent directors of r4e consider, having consulted with the Company's nominated adviser, Grant Thornton UK LLP, that the terms of the Amended Agreements and the new Agreements are fair and reasonable insofar as the Company's shareholders are concerned.

For information, please contact:

 
 reach4entertainment enterprises   Phone: [phone] 
  plc 
  Marc Boyan, CEO 
  Paul Summers, COO 
 
 Yellow Jersey, PR                 Phone: [phone] / +44 
                                    (0)7544 275 882 
 Charles Goodwin                   Email: [e-mail] 
 Harriet Jackson 
 Annabel Atkins 
 
 Grant Thornton, NOMAD             Phone: [phone] 
 Philip Secrett 
 Jen Clarke 
 Seamus Fricker 
 
 Dowgate Capital, Broker           Phone: [phone] 
 James Serjeant 
 David Poutney 
 
 

Notes to Editors

reach4entertainment enterprises plc ("r4e") operates a collection of theatrical, film and live entertainment marketing, PR, advertising and display agencies, across the world. The Company uses its extensive experience in the live entertainments space to create value through investing in innovative and established agencies that provide communications services to a range of clients involved with theatre, film, concerts and more.

For further information on r4e you are invited to visit the Company's website at www.r4e.com.

Spot and Company of Manhattan, INC.

A global leading full-service arts and live entertainment advertising and marketing agency. In an ever-changing media landscape, it stays ahead of the curve with a mix of bold positioning through interactive, broadcast, environmental and print campaigns.

https://www.spotnyc.com

Dewynters Limited

A leading independent arts, events and live entertainment marketing specialist. The agency's work in theatre, museums, attractions, sport and music is seen right across the globe.

http://www.dewynters.com

Newman Displays Limited

The UK's leading large-scale outdoor signage, front of house, marquee display and installation company. Clients include major West End theatre productions, leading film companies, cinemas and major global events.

http://www.newman-displays.com

Wake the Bear Limited

A marketing communications agency that supports businesses to invent, reposition and regenerate their brands in order to grow. The agency carries out brand strategy, communications planning and end-to-end activation.

http://wakethebear.co.uk

Story House PR Limited

A new public relations agency for the theatre and live entertainment industries, operating in the UK and internationally. The agency crafts engaging campaigns for audiences, driven by strategy: the right channel, at the right time, with the right message. Fully integrating PR with paid media and social, ensuring all elements of a campaign are working together, Story House collaborates with its clients to ensure its work is dedicated to realising their ambitions.

www.storyhousepr.co.uk

Buzz 16 Productions

Buzz 16 is an independent production company, which creates both short and long form sports orientated content. The Company was co-founded by former Manchester United player and respected broadcaster, Gary Neville, along with former Sky Sports Premier League producer, Scott Melvin.

https://buzz16.uk

Sold Out

Sold Out is an independent full service advertising agency, specialising in arts and entertainment for over 25 years.

https://soldout.london

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April 25, 2019 02:00 ET (06:00 GMT)