Crowd Media says it is now well positioned to capitalise on a number of existing and new opportunities, given its improved balance sheet and cash flows.
“More importantly, the investment brings with it the executive and strategic input of the consortium which collectively has been involved in a number of extremely successful businesses across Europe and North America,” Crowd says.
Under the agreement Crowd will undertake a capital raising of up to $3.7 million and issue IIC with convertible notes with a face value of up to that amount on the following key terms:
Tranche 1: $1.7 million 20-month facility to be drawn down by 31 August 2019 with a fixed conversion price of 1.8 cent
Tranche 2: $2.0 million 24-month facility, to be drawn down in 90 days with a fixed conversion price of 2.0 cents, subject to the parties agreeing to a business plan which focusses on the following key collaboration objectives:
o IIC introducing products and/or businesses to Crowd that will leverage Crowd’s proprietary technology and knowhow, enabling those products and/or businesses to be promoted and marketed through Crowd’s well-established digital marketing platforms and distribution channels;
o IIC introducing strategic business opportunities to Crowd (such as exclusive marketing and joint venture arrangements) to market its associated products in identifie new countries/regions including Scandinavia, Benelux, Eastern Europe, Asia and Australia; and
o leverage the strengths, intellectual property and know-how of each party, noting that Crowd’s strengths include its proprietary technology (currently only utilised in its Q&A
and Subscription verticals), social media and digital marketing.
Crowd says IIC’s strengths include innovative product development, brand-building, international business operations, brand positioning and digital media influencer marketing.
As part of the investment and collaboration under the agreement, Invincible Investments Consortium principals Steven Schapera – co-founder of BECCA Cosmetics - and Robert Quandt Quandt (former COO/CFO at Berlin-based Invincible Brands - will join the Crowd board in September.
Current Chairman Theo Hnarakis will be retiring from the board to pursue other opportunities, with Schapera replacing him as new chairman.