THE SOCIAL CHAIN AG The Social Chain AG: Social Chain AG successfully completes capital increase: Kick-off for operational integration of DS Group

Directive transparence : information réglementée

24/11/2021 13:45

DGAP-News: The Social Chain AG / Key word(s): Capital Increase
The Social Chain AG: Social Chain AG successfully completes capital increase: Kick-off for operational integration of DS Group

24.11.2021 / 13:45
The issuer is solely responsible for the content of this announcement.


Media Release

Social Chain AG successfully completes capital increase:
Kick-off for operational integration of DS Group

  • Placement of 1,145,324 new shares: gross issue proceeds of EUR 53 million
  • Capital increase will be used for partial financing of the acquistion of DS Group
  • Oberhof: "Successful capital market year 2021 is the base for Social Chain AG's strong operational financial year 2022."

Berlin, 24 November 2021. The Social Chain AG (ISIN:DE000A1YC996) has successfully completed a capital increase only a few days after its listing in the Prime Standard of the Frankfurt Stock Exchange. 1,145,324 new shares were placed with selected institutional investors at a price of EUR 46.40 per share. This corresponds to gross issue proceeds of EUR 53.1 million. Social Chain AG will use the proceeds to partially finance the acquisition of DS Group. On 19 October 2021, Social Chain AG announced the acquisition of DS Group. With the capital increase, all requirements for the economic integration of the internationally operating retail and brand house are in place.

Wanja S. Oberhof, CEO of Social Chain AG: "The capital increase is the kick-off for the operative cooperation with DS Group. In the coming weeks, we will demonstrate jointly with the first projects how we are redefining Social Commerce. We focus on two goals: the intelligent combination of social media, e-commerce and retail trade as an additional point of sale. And the transformation of existing retail brands into direct-to-customer brands (D2C). With Social Commerce, products can be more quickly developed and brands more efficiently built. Our omni-channel distribution system allows us to efficiently and broadly place our offering in the market - from useful everyday products to love brands. The variety of complementary multichannel distribution channels makes us independent of changing consumer trends. Especially in times like these, this is a great advantage."

After integration of DS Group: 20 leading brands, 7,000 products and distribution in 28 countries

After the integration of DS Group, the portfolio of Social Chain AG will in future include 20 leading brands and a total of 7,000 products, which are already sold in 28 countries. The LANDMANN brand is to become a prime example of how a retail brand can also become a successful D2C brand. Oberhof: "LANDMANN is already an established and high-quality brand. Barbecuing and cooking is an extremely popular topic in social communities and among influencers. Social Chain AG's influencer networks in the "Food" and "Home & Living" sectors are also used for LANDMANN." There is great potential for successful cross-promotions in Social Chain AG's product portfolio, from vegan burgers to accompanying salad toppings. LANDMANN is also high on the list of priorities when it comes to scaling products internationally. In the UK and the USA, Social Chain AG now has communities with a wide reach, such as Love Food, GameByte and Sporf, whose target groups have a particular affinity for the LANDMANN brand. The analysis of the company's own community data is intended to contribute to the development of new LANDMANN products. "At LANDMANN, Social Chain AG can fully utilize its expertise in terms of Social Commerce," says Oberhof. "LANDMANN is a perfect example of our equity story."

Positive conclusion for the capital market year 2021

After the capital increase, Oberhof draws a first positive conclusion for the entire year: "2021 was an extraordinarily successful year for Social Chain AG in terms of the capital market. Within one year, the share price of Social Chain AG has risen by 110 percent. We have switched our reporting to IFRS. Social Chain's shares have been listed in the Prime Standard of the Frankfurt Stock Exchange since 12 November 2021. And we are financing around 80 percent of the acquisition of DS Group, by far the largest and most important acquisition of Social Chain AG, through shares in Social Chain AG." In addition to a cash component of EUR 100 million, partly financed by the cash capital increase completed today, the purchase of DS Group will also be made possible by a non-cash capital increase.

As a result of the cash and non-cash capital increase, the number of Social Chain AG shares issued will rise to 15.492 million. Based on today's XETRA opening price (EUR 45.90), this would correspond to a market capitalisation of around EUR 711 million. A year ago, the market capitalization was still at EUR 238 million.

Operationally, 2021 has also been extremely successful so far. During the period from 1 January to 30 September 2021, Social Chain AG generated revenues of EUR 216 million. This corresponds to an increase of 137 percent compared to the same period of the previous year (1 January-30 September 2020: EUR 91 million). These figures do not yet include the acquisition of DS Group. Including revenues of the brand and trading company (proforma consolidated), total revenues of EUR 479 million for Social Chain AG in the first nine months of 2021 were realized. On this basis, the Group EBITDA is clearly positive and amounts to EUR 11 million. Following the acquisition of DS Group, Social Chain AG expects total revenue of EUR 620 million (proforma consolidated) in the 2021 financial year. For 2023, revenue of more than EUR one billion is targeted for the first time.



Dirk Heerdegen | Head of Corporate Marketing & Communications Social Chain AG
Jana Walker | Senior Corporate & Brand PR Manager Social Chain AG
E: press@socialchain.com | T: +49 30 208 48 40 10


About The Social Chain AG: Social Commerce on a global scale

Social Chain AG is reshaping the world of brands and commerce with Social Commerce. Our strategy and our actions are "Digital first - direct to customer": from branding to marketing to direct sales of our products in the categories Food, Home & Living, Beauty, and Fitness. Our online shops are the most efficient points of sale for our Direct-to-Consumer brands. More than 70 percent of Direct-to-Consumer sales are performed by our owned and operated online shops. Our communities, with over 86 million followers worldwide, inspire our customers and amplify our brand messages. We manage the expansion of our Social Commerce system of communities, brands, digital points of sale and logistics via our integrated proprietary technology platform: LINKS which analyses interests, purchase intentions and product satisfaction along the entire digital customer journey.
Social Chain AG's headquarters are in Berlin, with additional locations in Munich, London, Manchester, New York and Los Angeles. Social Chain AG shares (WKN: A1YC99) are being traded on XETRA and other German stock exchanges. Since 12 November 2021, the shares of Social Chain AG are also listed in the Prime Standard of the Frankfurt Stock Exchange.

Important note:

This publication constitutes neither an offer nor a solicitation of an offer to purchase securities of The Social Chain AG or any of its subsidiaries in the United States of America, Germany or any other country. Neither this publication nor its contents may be relied upon in connection with any offer in any jurisdiction. The securities referred to above have not been and will not be registered under the Securities Act, as amended (the "Securities Act"), and may not be offered or sold in the United States until registered or an exemption from the registration requirements of the Securities Act has been obtained.

In the United Kingdom, this announcement is directed only at (i) persons falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), (ii) persons falling within Article 49(2)(a) to (d) of the Order (high net worth companies, partnerships, etc.) or (iii) persons to whom it may otherwise lawfully be communicated in accordance with applicable securities laws (such persons together, the "Relevant Persons"). This publication must not be referred to or relied upon by persons other than Relevant Persons. Any investment or investment opportunity referred to in this publication is available only to Relevant Persons and will be entered into only with Relevant Persons.

In Member States of the European Economic Area and the United Kingdom, the offering of the securities described in this notice (the "Offering") is directed only at qualified investors as defined in Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 (Prospectus Regulation).

No action has been taken that would permit an offer of the securities, their acquisition or the distribution of this publication to countries where this is not permitted. Any person receiving this publication must inform themselves about and observe any restrictions that may apply.

This publication does not constitute a recommendation regarding the Placing. Investors should consult a professional adviser as to the suitability of the Placing for the person concerned.

This release may contain certain forward-looking statements, estimates, beliefs and projections regarding the future business, results of operations and performance of The Social Chain AG (" Future-oriented Statements"). Future-oriented statements can be recognized by terms such as "believe", "estimate", "anticipate", "expect", "intend", "will", or "should" as well as their negation and similar variants or comparable terminology. Future-oriented statements include all matters that are not based on historical facts. Future-oriented statements are based on the current opinions, forecasts and assumptions of the Management Board of The Social Chain AG and involve considerable known and unknown risks and uncertainties, which is why the actual results, performance and events may deviate substantially from the results, performance and events expressed or implied in future-oriented statements. Future-oriented statements contained herein should not be construed as guarantees of future performance and results and are not necessarily reliable indicators of whether or not such results will be achieved. The future-oriented statements contained in this announcement are only valid on the date of this publication. The Company will not update any information, future-oriented statements or conclusions contained in this announcement in light of subsequent events and circumstances, nor will it reflect subsequent events or circumstances or correct inaccuracies that arise after the publication of this announcement as a result of new information, future developments or other circumstances, nor does it assume any obligation to do so. Neither the Company nor any other person assumes any responsibility whatsoever for the occurrence of the future-oriented statements or assumptions contained herein.

Information for distributors

Pursuant to the EU Product Surveillance Requirements, a product approval process in respect of the Shares has been carried out by each distributor which has determined that the Shares are (i) suitable for a retail target market consisting of retail investors and investors meeting the criteria for professional clients and eligible counterparties (each as defined in MiFID II (Directive 2014/65/EU)) and (ii) suitable for distribution through all distribution channels permitted under MiFID II, respectively. Each distributor subsequently offering the Shares is responsible for independently evaluating the target market for the Shares and determining appropriate distribution channels.

24.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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Language: English
Company: The Social Chain AG
Gormannstraße 22
10119 Berlin
Phone: +49 (0)30 208484010
E-mail: contact@socialchain.com
Internet: www.socialchain.com
ISIN: DE000A1YC996
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf (Primärmarkt), Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1251729

End of News DGAP News Service

1251729  24.11.2021