Acquisition of the leading Georgian digital marketing agency

Georgia Capital PLC (the “Group” or “Georgia Capital”) announces the acquisition of a 60% equity stake in Redberry LLC (“Redberry” or the “Company”), a leading Georgian digital marketing agency. Redberry is fully owned and managed by two young Georgian entrepreneurs. The total cash consideration for the acquisition is US$ 3.2 million, of which US$ 0.4 million is used to acquire the equity stake from the existing shareholders and US$ 2.8 million capital will be injected to fund business growth. New capital will enable Redberry to further institutionalise digital transformational services, while also continuing  its digital marketing business operations. Redberry will launch and operate a new platform of digital start-up developments (“start-up studio”). The start-up studio, a unique concept within the Georgian market, will be launched and operated to generate cash flows from two main directions: 1) creating digital start-ups and 2) developing digital sales channels/business lines for corporates through joint venture partnerships. Additionally, Georgia Capital will further earmark seed capital of US$ 2.4 million for future capital allocations into the successfully developed digital start-ups.