Private Capital Fundraisings Case Study
Private Capital Fundraisings Digital Cinema

Private Capital Fundraisings for a Digital Cinema Software Company

The Company develops and sells mission critical software in the cinema industry. Clients include the exhibitors (major cinema chains and independent cinemas), Hollywood studios and advertising agencies. Its products include a cinema management system which automates large parts of cinema operations and a movie transmission software piece which transfers large encrypted movie files digitally from studios to exhibitors. The Company sells its software worldwide and its first-mover advantage in introducing digital products to the cinema industry means that it currently has a monopoly position in many markets.

SPARK advised the Company on a private debt raise for growth capital in the roll out of the movie transmission software in Spain and Germany (which was heavily encouraged by the Hollywood studios). SPARK solicited different types of funding offers, advised the client on the offer terms, as well as co-ordinated the due diligence process. SPARK prepared the marketing materials and assisted in pitching the opportunity to various funders.

SPARK also advised the Company on a minority equity investment into the business for further growth and shareholder realisation. In addition to this, SPARK arranged a revolving credit facility (RCF) for general corporate purposes (such as liquidity and acquisitions).

SPARK provides specialist independent advice across the spectrum of debt/equity products (including minority equity), transactions and markets. We have an understanding of both company and funder perspectives. In each transaction, SPARK runs a bespoke and efficient process, which has received significant support from both companies (clients) and funders.

We prefer to run a bespoke process with careful selection of a smaller universe of different types of funders to provide the client with a diverse and varied approach/feedback.