(Alliance News) - 7digital Group PLC on Wednesday said it intends to raise a minimum of GBP150,000 via a share placing to have "sufficient" funding to reach operational profitability by mid-2020.
The digital music and radio services platform operator plans to issue 75.0 million shares at a price of 0.2 pence each. 7digital shares were trading 7.2% lower on Wednesday in London at 0.20p each, giving it a market capitalisation of GBP2.8 million.
The placing is to be conducted by way of an accelerated bookbuild, with Arden Partners PLC acting as nominated adviser and sole broker.
The company expects the placing to close later on Wednesday, when it intends to make a further announcement.
"This additional funding will further support our streamlined product and organisational strategy that has allowed us to successfully raise over GBP5 million since June," said Chief Executive Paul Langworthy.
"With this investment, I'm excited to lead the 7digital team in its next chapter to build compelling music products that achieve the customer growth and deliver the operational efficiency needed to enhance revenue and steer us to profitability," added Langworthy.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
