Rhythm pays another $5m to RadiumOne

The AIM-traded firm had announced the transaction, worth up to $22m, of certain assets of RadiumOne on 27 June, which at the time it said would allow it to gain access to a data driven marketing platform, as well as consumer insights, audience segmentation and targeting technology, and “premium demand relationships”.

At the time, the consideration included an upfront payment of $5.5m in cash, with up to a further $16.5m being held back as “security” for certain indemnification obligations of RadiumOne.

“The deferred consideration amount resulted in 30,956,849 company shares being held back from the consideration payable on closing based on a price of $0.53 per share,” RhythmOne’s board said in its statement.

“The current payment of $5M in cash against this deferred consideration amount reduces the number of company shares held back by 9,380,864, for a current maximum number of 21,575,985 company shares to be issued by the company at a later date, not to exceed one year from the date of closing.

“Any company shares issued will be subject to a lock-up of one year from the date of closing, subject to limited exceptions.”