7digital shares are down as chairman Tamir Koch steps down after 3 years
Shares of 7digital Group PLC fell on Friday as it announced that Chairman Tamir Koch would leave office effective immediately, to focus more time on developing the eMusic.com Inc. blockchain.
Shares of the London-based music licensing provider fell 6.4% to 0.18 pence each in London on Friday morning.
Koch, who has served as chairman since July 2019, will remain on the board as a non-executive director.
In his place, 7digital has promoted non-executive director Mark Foster to interim chairman. Foster has been with the company as a non-executive since 2015.
7digital has begun its search to appoint a permanent chairman, he added.
In addition, the company said it had entered into an unsecured loan agreement with major shareholder Magic Investments SA for £500,000.
7digital said Magic is represented by David Lazarus, the company’s non-executive director. Via Magic, Lazarus is interested in 742.4 million shares, or a 27% stake.
The loan is repayable no later than October 1, 2023 and bears interest at the rate of 5% per annum, payable quarterly. It will be used for “working capital purposes” and to repay his £50,000 loan previously taken from Koch.
Managing Director Paul Langworthy said: “We are pleased to have secured this funding, which will be used primarily for working capital purposes. I would like to thank David on my behalf and on behalf of the management team for his trust and support.
“I would also like to thank Tamir for his guidance and support throughout his tenure as President. He has made a significant contribution to the development of the company, and I am pleased that he remains on the board and that we retain access to his experience and expertise,” added Langworthy.
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