(Sharecast News) - Digital music company 7digital Group intends to raise at least £5m, it announced on Thursday, to support a number of commercial growth opportunities.
The AIM-traded firm said the funds would be raised through the issue of new ordinary shares with certain institutional and other investors, at a price of 2.25p each.
It said the fundraise would be conducted by means of a placing of new ordinary shares, together with certain direct subscriptions for new shares.
"The net proceeds of the placing and subscription will be used to support immediate and medium term commercial growth opportunities, in particular within home fitness, artist monetisation, and social media," the board explained in its statement.
"The issue price represents a discount of 23.7% to the closing price of 2.95p per ordinary share on 2 September, being the latest practicable date prior to the publication of this announcement."
At 1525 BST, shares in 7digital Group were down 18.81% at 2.4p.
9 Sep 2014 10:44