Zinc Media Group Plc (LON:ZIN) has announced that, following a strong trading performance by The Edge Picture Co Limited in the period since acquisition in August 2022, the first-year earnings target, set out in the earn-out terms, was achieved.
The first year earnout payment, payable to the vendors of The Edge (the “Vendors”) in accordance with the terms of the share purchase agreement (the “SPA”), is £0.85m, to be satisfied partially in cash and partially in new Zinc Media shares. As per the SPA, £247,375 will be settled in cash with the balance settled by the allotment of 654,637 new ordinary shares (the “Earnout Shares”) to the Vendors based on a share price of 0.914 pence per share, being the average market price for the 30 business days up to and including 10 November 2023. The Earnout Shares are subject to a 12 month lock-in period and orderly market provisions under the SPA. The cash element of the earnout payment will be satisfied from the Group’s existing resources.
