VINYL GROUP LTD — M&A Activity 2024

Aug 12, 2024

ASX Release

VINYL GROUP TO ACQUIRE MEDIAWEEK ASSETS

HIGHLIGHTS:

• Purchase the assets of Mediaweek for $1M; 50% cash, 50% scrip

• Enhance trade media offering and utilise current capabilities to expand the business

• Profitable business, to add $2.2M in revenue, with further savings identified

Melbourne, Australia , 13 August, 2024: Vinyl Group (ASX: VNL), Australia’s only ASX-listed music Company, has executed a binding Heads of Agreement to acquire Mediaweek from Chattr Pty Ltd.

Mediaweek is a leading media trade publication in Australia in both readership and industry respect. The company was founded in 1990 and has a monthly average readership of 300,000 unique visitors.

Mediaweek reports on the business of media, marketing and advertising in Australia and expands on the trade media capabilities of the Company’s media arm, which includes B2B titles The Music Network and Variety Australia. Mediaweek also hosts a popular events calendar with Mediaweek100 and the Next of the Best Awards, which celebrates industry leaders of today and tomorrow.

Vinyl Group will acquire the assets of Mediaweek in exchange for $500,000 in cash and $500,000 in shares valued at the fifteen (15) day Volume Weighted Average Price (VWAP) of Vinyl Group shares on the ASX for the period immediately preceding the Completion Date. These shares will be subject to a twelve (12) month escrow from the date of issue.

Upon completion several Mediaweek employees will join Vinyl Group as part of the deal while its current owner Trent Thomas will remain with Chattr Pty Ltd and the Chattr website, the assets of which are not included in this acquisition.

Mediaweek unaudited revenues for the 2024 financial year amounted to $2.2M, with a proforma profit of at least $350K as Mediaweek shares costs across Mr Thomas’ Chattr platform costs. Vinyl Group expects to realise further and immediate profits through its integration efforts and synergies from existing capabilities within the Company.

Completion is dependent on certain completion deliverables including the buyer giving notice to the Seller that Due Diligence has been completed, and no material adverse changes occurring between now and completion. Completion is expected by no later than 30 September 2024.

Vinyl Group CEO, Josh Simons, said: “Mediaweek will join Vinyl Group with a mission to accelerate our trade media and events business in Australia and improve margins across these pillars. This acquisition follows a review of our media arm earlier in the year, which identified several opportunities to enhance the efficiency and reach of these operations. Further synergies are expected to be unlocked and we look

Vinyl Group Ltd | 11 Wilson Street, South Yarra VIC 3141 | ABN 15 106 513 580 | ASX: VNL

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forward to announcing a managing editor of Mediaweek following completion. This strategic asset purchase demonstrates our commitment to growing our global music and media tech portfolio.”

Authorisation and Additional Information:

This announcement was authorised by the Board of Vinyl Group Ltd

Vinyl Group Investor Relations: E: investors@vinyl.group

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ABOUT VINYL GROUP

Vinyl Group is the heartbeat of an equitable music world, providing tech solutions that connect and give credit to the creator economy. The Company’s diverse portfolio has touchpoints across all corners of the global music ecosystem, empowering everyone from creators to consumers. Vinyl.com offers a world-class ecommerce experience including over 50K titles for fans to support their favourite artists. Vampr is the leading dedicated social-professional networking platform and talent marketplace, allowing 1.4M creators to discover collaborators and monetise their work in over 180 countries. Jaxsta is the world’s largest and only database of official music credits with over 380M verified credits to streamline revenue opportunities for businesses in the music industry. The Brag Media is Australia’s largest creator of premium youth content and events and publishes iconic titles including Rolling Stone AU/NZ, Variety Australia, TheBrag.com, The Music Network, Tone Deaf, and more.

Vinyl Group Ltd | 11 Wilson Street, South Yarra VIC 3141 | ABN 15 106 513 580 | ASX: VNL