RNS Number : 9434J
DJI Holdings PLC
23 December 2015



23 DECEMBER 2015


Grant of warrants


DJI Holdings plc (AIM: DJI, "the Group", "DJI"), a licensed promoter and distributor of Chinese sports and welfare lottery products to third party retailers and direct to consumers, announces the grant of warrants to management and advisers as set out below.

Management awards

Since the IPO in 2014, DJI's Group Chief Executive, Darren Mercer, has successfully pursued a strategy of diversification to build e-commerce revenue streams that are not dependent on the Chinese lottery.  Important joint ventures have been signed, such as the agreement with the Heilongjiang Provincial Sports Bureau, and key channel partners secured to support such initiatives.

In recognition of these achievements and as an incentive to continue generating new business which the Directors believe will begin to deliver significant shareholder value in 2016, the Company has awarded Mr Mercer warrants to subscribe for up to 4,000,000 new ordinary shares of 10p each in the Company at an exercise price of 35p each.  These warrants may be exercised at any time before 22 December 2018 and represent 2.7% of the current issued share capital in the Company.

Mr Mercer, a director and 19.9% shareholder in the Company, is a related party.  Accordingly, the grant of warrants is treated as a related party transaction under the AIM Rules.  The Independent Directors (being the directors other than Mr Mercer) consider, having consulted with the Company's Nominated Adviser, Strand Hanson Limited, that the terms of the grant of warrants are fair and reasonable insofar as shareholders are concerned.

Adviser warrants

In connection with professional services provided to the Company, the Directors have agreed to grant warrants to certain advisers to subscribe for, in aggregate, up to 1,153,892 new ordinary shares of 10p each in the Company at an exercise price of 35p each.  These warrants may be exercised as to 500,000 at any time before 22 December 2018 and 653,892 at any time before 2 October 2020.






For further information please contact:


DJI Holdings plc 

+44 (0) 1565 872990

Darren Mercer, Group Chief Executive

IHA Consulting

+44 (0) 20 3393 1185

Stephen Benzikie

Strand Hanson Limited (Nominated & Financial Adviser)

+44 (0) 20 7409 3494


Andrew Emmott / Ritchie Balmer


Mirabaud Securities LLP (Broker to DJI)



+44 (0) 20 7878 3362

Peter Krens



Notes to Editors


DJI's strategy is to capitalise on the rapidly expanding Chinese lottery market and the opportunity to deliver lottery ticket fulfilment sales to its substantial client base of large Chinese corporations (B2B) and individual consumers via the Group's owned and operated websites (B2C), within the online and mobile environment.


Through the Group's long-standing relationships with the Chinese regulators, portfolio of lottery contracts and reliable technology platform, the Group is well positioned to capture the market opportunity.


The principal activities of the Group are the development, promotion and distribution of authorised lottery products in China. DJI's subsidiaries are licensed and/or contractually authorised to distribute and promote Sports and Welfare lottery products online, via mobile and through physical retail outlets across China.


The Group has a differentiated approach to the Chinese lottery market in that DJI operates throughout the promotion and distribution value chain. The Group offers:

·      front-end lottery ticket sales via websites owned and operated by the Group, third party websites, mobile applications and physical retail outlets

·      back-office lottery ticket fulfilment services to large online and offline lottery partners


Beyond the Group's lottery activities, DJI has a joint venture with the Heilongjiang Provincial Sports Bureau (HSB) to provide support services to all of HSB's commercial activities. These include football and winter sports in the province, including China's largest ski resort, Yabuli.


The HSB joint venture includes, for the first time in a Chinese province, a Business-to-Business (B2B) online booking system for sports, based on DJI's technology. The JV agreed terms with three of China's largest online portals to sell and promote this B2B system from 1 November 2015. 




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