LONDON (Alliance News) - 7Digital Group PLC said Monday a third party investor has purchased both of its outstanding loan notes and entered into a standstill agreement with the company agreeing not to seek an early redemption or conversion of the notes before the end of June.
7Digital stressed that this deal does not provide the company with new financing and remains of the view it will require "material" further equity or debt funding.
Without such funding, 7Digital said it will be "unlikely to be able to continue as a going concern" beyond June.
The company did say it was in "discussions with regard to a significant injection of equity financing" but this is "likely" to be at a discount to the firm's "prevailing" share price. Shares in 7Digital were down 9.4% Monday afternoon at 0.29 pence each.
7Digital noted there was no guarantee that an equity financing will be completed.