TV channel Box Nation’s holding company Nation Media is attempting to raise up to £6.5m via a placing and offer for subscription to finance marketing, acquire additional rights and expand internationally.
The offer should raise between £1.5m and £3.5m and it closes on 26 February The minimum application is £1,000. The shares should qualify for EIS and VCT.
An offer price range of 60p to 75p has been set. The flotation could value Nation Media at between £11.4m and £14.3m before new money is raised. William Ives, the founder of Rainham Steel, has agreed to subscribe for £500,000 worth of shares in the placing, having already invested £3.3m last year. Rainham Steel finance director Alison Chapman is the part-time finance director of Nation Media.
Box Nation is a subscription TV channel purely focused on boxing and it started broadcasting in November 2011. The channel is available on Sky and Virgin Media and an HD version will launch on Sky, which will enable Nation Media to generate pay per view revenues. Last year’s David Haye fight with Derrick Chisora was pay per view but this was shown on cable. Even so, it generated nearly £1m in revenues. At the moment revenues come from a £10 sign up fee and monthly subscriptions costing £10 (£8.33 excluding VAT). There is no minimum subscription period.
In the year to January 2013, revenues were £9.69m and the loss was £4.8m. Nation Media will be loss-making in the year to January 2014 as well. A creditor went into administration last August and the settlement reduces the amount owed by £609,000.
Boxing promoter Frank Warren’s family is a major shareholder and they are the main supplier of boxing events to Box Nation through his Queensbury business. George Warren is on the board. The company says that the deals are done on an arms length basis and the Warren family’s stake will be diluted after the fundraising. Nation Media has links with other promoters in the UK and overseas, including Oscar De La Hoya’s Golden Boy Promotions and the promoter of Amir Khan.
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