Soul Patts chairman puts the needle on Vinyl Group's $5.4 million raise

Soul Patts chairman puts the needle on Vinyl Group's $5.4 million raise

Photo: Wesley Gibbs, via Unsplash.

Vinyl Group (ASX: VNL), the owner of music credits business Jaxsta, youth publisher and agency The Brag Media and music fan e-commerce store Vinyl.com, has today revealed that Washington H. Soul Pattinson (ASX: SOL) chairman Robert Millner is one of its significant shareholders.

Millner's name has not come up in any substantial shareholder notice for the company, but it is understood that he holds a few million shares in the company spread across different investment vehicles, which would equate to less than 1 per cent.

The group reported today that Millner, WiseTech (ASX: WTC) founder Richard White, who owns more than a third of the company, CEO Josh Simons, and director Ken Gaunt, had committed to invest $2.4 million by way of taking up the entitlement and shortfall offer in a $5.4 million raise.

The raise is expected to lift cash reserves by $5.15 million, enabling Vinyl to accelerate user acquisition efforts on its Vinyl and Vampr platforms, the latter being a leading online social-professional network for creators that was founded by group CEO Simons.

Funds will also go towards reducing technology costs of the Jaxsta platform and growing the media business.

The 1-fo-17 offer, fully underwritten by Peloton Capital and Red Leaf Securities, is at 9.8 cents per share (cps), representing an almost 11 per cent discount of the last trading price of 11 cents per share.

Today's announcement follows Richard White and Aussie-founded US music tech giant Songtradr lifting their respective stakes in Vinyl Group, formerly known as Jaxsta, to 34 per cent and almost 20 per cent respectively in May.

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