Eros International Plc Announces $50 Million Equity Investment Facility to Fund Strategic Digital Growth
January 27 2020 - 4:46PM
Business Wire
Eros International Plc (NYSE: EROS) (the “Company”), a leading
company in the global Indian film entertainment industry, today
announced that it has entered into an equity investment facility in
the form of a subscription agreement (the “Facility”) of up to
US$50 million. Under the terms of the agreement, Eros may elect to
sell up to $50,000,000 of its A ordinary shares over a 12-month
commitment period. Eros is not obligated to sell any shares under
the terms of the Facility, and any share sales would be entirely at
the discretion of Eros.
The purchase price of the ordinary shares will be at a 5%
discount of the volume weighted average share price, but in no
circumstances lower than $3.60 per share prior to February 29,
2020. The Facility will be primarily used for opportunistic
investment in new content, with a focus on digital series and
originals, to fuel the growth of the Company’s digital platform,
Eros Now.
“The Facility provides Eros with incremental flexible financing
capacity that will underpin our content development strategy. Any
and all share sales under the terms of the agreement will be in
amounts and at times determined by Eros, enabling us to sequence
such purchases so as to minimize any potential dilution,” Eros
Group Chief Financial Officer and President of North America Prem
Parameswaran said. “Given the significant growth in the Indian
digital landscape we feel the Facility gives us the ability to be
dynamic and deploy capital opportunistically on digital
opportunities, further strengthen our market position and generate
the best return for our shareholders.”
The shares are being offered pursuant to a registration
statement on Form F-3 (including a prospectus) and a prospectus
supplement for the offering to which this communication relates
which have been filed with the Securities and Exchange Commission
(the “SEC”). The registration statement was declared effective on
October 2, 2017. Investors should read the prospectus in that
registration statement and the prospectus supplement for the
offering to which this communication relates and other documents
that the Company has filed and will file with the SEC for more
complete information about the Company and the offering. You may
obtain these documents for free by visiting EDGAR on the SEC’s
website at www.sec.gov. Alternatively, copies of the prospectus
supplement and accompanying base prospectus related to this
offering may be obtained from the Company: Eros International Plc,
550 County Avenue Secaucus, New Jersey 07094, or by calling (201)
558-9021.
This press release does not constitute an offer to sell or
the solicitation of offers to buy any securities, and shall not
constitute an offer, solicitation or sale of any security in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About Eros International Plc
Eros International Plc (NYSE: EROS) is a leading global company
in the Indian film entertainment industry that acquires,
co-produces and distributes Indian films across all available
formats such as cinema, television and digital new media. The
Company was the first Indian media company to list on the New York
Stock Exchange and has experience of over three decades in
establishing a global platform for Indian cinema. The Company has a
competitive advantage through its extensive and growing movie
library comprising over 3,000 films, which include Hindi, Tamil,
and other regional language films for home entertainment
distribution. The Company also owns the rapidly growing OTT
platform Eros Now. For further information please visit:
www.erosplc.com.
Forward-Looking Statements
This press release contains forward-looking statements.
Forward-looking statements typically are identified by the use of
terms such as “may,” “will,” “should,” “might,” “expect,”
“anticipate,” “estimate,” “plan,” “intend,” “goal,” “project,”,
“strategy,” “future,” and similar words, although some
forward-looking statements are expressed differently. These
statements include but are not limited to statements regarding the
proposed offering and the intended use of the net proceeds from the
offering. You are cautioned not to place undue reliance on
forward-looking statements, which reflect management’s expectations
only as of the date of this press release. Such statements involve
known and unknown risks, uncertainties, assumptions and other
factors many of which are out of the Company’s control and
difficult to forecast that may cause actual results to differ
materially from those that may be described or implied. The Company
cannot be certain that the offering will be completed on the terms
discussed above, or at all. The other risks described in the
Company’s Annual Report on Form 20-F for the fiscal year ended
March 31, 2019 and other reports and registration statements that
the Company files with the SEC from time to time should be
carefully considered. The Company undertakes no obligation to
publicly release the results of any revision or update of these
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law. The Company
nonetheless reserves the right to make such updates from time to
time by press release, periodic report or other method of public
disclosure without the need for specific reference to this press
release. No such update shall be deemed to indicate that other
statements not addressed by such update remain correct or create an
obligation to provide any other updates.
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version on businesswire.com: https://www.businesswire.com/news/home/20200127005703/en/
Mark Carbeck Chief Corporate and Strategy Officer Eros
International Plc +44 207 258 9909 mark.carbeck@erosintl.com
Media: Erica Bartsch Sloane & Company +1 212 446 1875
ebartsch@sloanepr.com
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