The AIM-listed media firm said the new division will target the fee-based promotion and organisation of global sports and entertainment events including motorsport, sailing, cycling, golf, music and lifestyle, adding that several existing contracts for events will be novated to LCSE’s South African subsidiary from Worldsport South Africa (WSSA).
Live Company said the first event the division will focus on the largest participant based cycle race in the world, the Pick n Pay cycle tour, which is planned to take place in Cape Town in March 2021, while the wider strategy of the LCSE division will be to develop new global concepts for international events in addition to expanding existing South African based events.
Meanwhile, the group said LCSE together with Explorado Group, the parent company of the firm’s existing partner in Germany for BRICKLIVE, have formed a joint venture, K-POP Europa Ltd (KPE), which is in the final stages of an agreement to stage a K-Pop concert in Germany in partnership with a Korean broadcaster and a local stadium.
LCSE is also planning to launch a ‘Best of’ lifestyle event concept showcasing the best of wine, food and art with a planned global roll out in 2021 and 2022 potentially to include cities such as Milan, Seoul and Singapore.
Other event concepts such as e-FEST, a sustainability festival around the Formula E race that includes an electric motorshow and a climate change conference, are also in the final stages of development. LCSE will also acquire the right to sell sponsorship and the management for the upcoming Formula E race in Cape Town planned for December 2021 through the acquisition of E Movements Holdings Ltd.
Live Company said the £1.15mln consideration under the acquisition agreement for LCSE, which includes the novated contracts from WSSA and the introduction of the new projects and concepts, will be satisfied by the issue of 11.5mln new shares at a price of 10p each, a 33% premium to its closing price on Wednesday.
The group added that the consideration of £300,000 for the acquisition of E-Movement will be paid in cash, with £50,000 due in December and the rest throughout 2021.
To provide funding for the development and working capital of the new division and the purchase cost of E-Movement, Live Company said it has raised £600,000 through the placing of 12mln new shares at a price of 5p each, a 33% discount to its Wednesday closing price.
"I am very excited at the chance of adding significant revenues to the group from our new division, which will be achieved with minimal addition to our central overheads. Discussions with our global partners with regards to the expansion of this new division have been very positive and we look forward to providing further information in due course”, Live Company chairman David Ciclitira said in a statement.
“The forthcoming introduction of a global [coronavirus] vaccine programme will hopefully add opportunities for the second half of 2021 and beyond. Our experience in this new field, together with the ability to use our Cape Town-based team working with our global partners offers significant economies of scale. I look forward to updating shareholders on our developments in due course”, he added.