Live Company shares slump after agreeing to acquire minority stake in online art sales platform

Media group Live Company said on Tuesday that it has subscribed for a non-controlling stake in online art and digital art sales platform Start Art Global.

Live Company, which will subscribe for a minority 16.3% interest in Start Art, will pay £1.0m in cash for the stake and will fund the acquisition by way of a placing of new ordinary shares at a price of 5.0p each.

On top of the acquisition costs, Live Company will also look to raise a further £500,000 for working capital for its existing Brick and Sports business.

Chairman David Ciclitira said: "We have spent the past year of lockdown both restructuring our existing business, launching a new sports and entertainment division and exploring opportunities in complementary businesses less affected by Covid. Today marks an acquisition in a very exciting space which encompasses both celebrity art and the world of NFTs.

"The raising of additional working capital and introduction of institutional clients into the register will leave the company in a stronger position. I remain absolutely committed to the Group and excited for the future of our core BrickLive business, recently established sports and entertainment division and this new online art investment."

As of 0950 BST, Live shares had slumped 21.98% to 4.53p.