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7digital Group PLC shares dropped on Friday as it said that Chair Tamir Koch will step down from his role with immediate effect, to focus more time on the development of eMusic.com Inc blockchain.
Shares in the London-based music licensing provider were down 6.4% to 0.18 pence each in London on Friday morning.
Koch, who has been chair since July 2019, will remain on the board as a non-executive director.
In his place, 7digital has promoted Non-Executive Director Mark Foster to interim chair. Foster has been with the company as a non-executive since 2015.
7digital has begun its search to appoint a permanent chair, it added.
Further, the company said it has entered into an unsecured loan agreement with significant shareholder Magic Investments SA for £500,000.
7digital said Magic is represented by David Lazarus, a non-executive director of the company. Via Magic, Lazarus is interested in 742.4 million shares, a 27% stake.
The loan is repayable on or before October 1, 2023, and has an interest rate of 5% per year, payable on a quarterly basis. It will be used for ‘working capital purposes’ and to repay its £50,000 loan previously drawn from Koch.
Chief Executive Paul Langworthy said: ‘We are pleased to have secured this financing, which will primarily be used for working capital purposes. I'd like to extend my thanks to David on behalf of myself and the executive team for his trust and support.
‘I'd also like to thank Tamir for his advice and support throughout his tenure as chairman. He has made a tremendous contribution to the development of the business, and I am pleased that he remains on the board and we retain access to his experience and expertise,’ Langworthy added.
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