(Alliance News) - 7digital Group PLC on Tuesday said it has appointed Tamir Koch as non-executive chair with immediate effect and, as a result, Mark Foster will revert back to his non-executive director role.
Koch is currently president of eMusic.com, Inc, an online music and audiobook store focusing on discovery and sales of independent music and artists.
7digital said Koch along with his partners is co-ordinating GBP6.5 million in funding for the company. 7digital didn't specify the type of funding planned, whether debt or equity. Koch and his partners have already invested GBP2 million by purchasing existing loan notes and subscribing for new shares in 7digital.
"I am confident of concluding this raise in the coming weeks and removing any concerns to ongoing company operations," Koch said.
The company, which provides music production services, also appointed David Lazarus as non-executive director, with immediate effect. Lazarus, a partner of Koch and an industrialist and international entrepreneur, is currently an executive director of southern Africa focused RAM Hand-to-Hand Couriers Group.
At the start of July, 7digital said it still needs to raise funds, despite welcoming the investment by Koch and Lazarus.
7digital had said it plans a fundraise in this month, saying this is required to stave off insolvency. In late June, the firm said shareholders had refused to grant the right to issue shares.
7digital posted GBP19.9 million in revenue for 2018, up 19% year-on-year, but its pretax loss widened to GBP12.2 million from GBP5.2 million, after a significant rise in expenses and one-off costs.
Shares in 7digital were up 67% at 0.22 pence each on Tuesday morning. A year ago, 7digital traded as high as 5.85p.