LONDON (Alliance News) - 7Digital Group PLC shares plummeted Thursday after the digital music platform said an investor redeemed certain loan notes early and, as a result, the company requires "material" funding by June or is unlikely to be able to continue as a going concern.
Shares in 7Digital were down 35% in morning trade at 0.16 pence each.
7Digital said the outstanding notes being redeemed amount to GBP352,570, which had a maturity date of December 31. The amount is the balance of a GBP500,000 tranche, the remainder of which was converted into shares in the company in February.
The company noted there is still GBP250,000 outstanding to another loan note holder.
7Digital said: "The board's view remains that the company will require material further equity and/or debt funding. Following receipt of the notice and continued review of the company's financial forecasts, it is likely that such funding will be required by the beginning of June 2019. Without such funding, the company is unlikely to be able to continue as a going concern."