Reach4Entertainment is passing the hat round again; could it be different this time?
On 4th December Reach4entertainment (formerly Pivot Entertainment, formerly First Artist) announced that it planned to raise £5.5m in a placing - this follows on from the £2m raised in October 2016 and the £4.0m raised in November 2015. All of this money is being poured into an £11m company with a dreadful share price history. So, are the investors in the latest placing - including some well known names - just throwing good money after bad? Or is this penny share about to turn a significant corner? AimZine digs deeper…
reach4entertainment (AIM:R4E) is a Group of Theatre and Film marketing companies based primarily in London and New York. The main three companies - Dewynters, Spotco and Newman Signs - are each well established theatre advertising and marketing companies. It is unusual to see three seemingly good companies rolled together into a poorly performing small AIM share. This combination came together in the “noughties” with some poorly judged acquisitions. In 2006, the Company, then a sports agent by the name of First Artist, purchased the family owned Dewynters (established in 1876!) for £15m. Then in 2008 First Artist continued its move…