Vinyl Group Limited: Secures AU$11million Facility for AU$8million Acquisition of Brag Media

Vinyl Group Limited (ASX: VNL), Australia's sole ASX-listed music company, has finalized a binding Share Sale Agreement to acquire The Brag Media, Australia's largest youth publisher, encompassing titles such as TheBrag.com, The Music Network, Tone Deaf, Rolling Stone, and Variety in Australia and New Zealand. The acquisition, valued at AU$8 million in cash with an additional AU$2 million to be paid in cash or stock at Vinyl Group's discretion, is backed by an AU$11 million investment infusion from WiseTech Global (ASX: WTC) Founder and CEO Richard White.

The deal structure includes an Up-Front Compensation combining shares' value and repayment of loans, subject to finalization based on the Completion Accounts. An additional Deferred Compensation of 6% annual interest is contingent on The Brag Group achieving specific revenue and EBIT targets by 2024. The Brag Media's unaudited FY2023 report showcased revenues of AU$8.39 million, with a net profit of AU$334,824. With an average revenue growth of 125% over the past two fiscal years, the acquisition aims to bolster Vinyl Group's combined revenue, estimated at AU$9 million as of June 30, 2023.

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