7Digital's CEO and CFO step down to cut costs

(Sharecast News) - 7Digital's shares leapt on Thursday after it finalised fundraising efforts and confirmed the exit of its chief executive and chief financial officer in order to cut costs.
Chief executive John Aalbers has agreed to assist the AIM traded company for a period of 3 months to ensure a smooth transition to the new leadership of his successor, current chief operating officer Paul Langworthy.

Likewise, outgoing chief financial officer Julia Hubbard will assist her replacement, current eMusic chief financial officer Michael Juskiewicz, until mid-September.

Alongside other cost-cutting initiatives that have already been put in motion, this will save the company close to £1m per annum.

After seeking means to refinance the business through a combination of asset sales and fundraising, Aalbers also stated that the rescue of 7Digital has largely been completed after it secured a new, strategic majority investor, which has stated that it is prepared to invest further funds.

The final phase of the fundraising is in progress and the AIM traded company expects an additional £4.5m to be raised in the coming weeks, with the funds intended to provide the company with the resources to implement a revised strategy that will put it back on track towards both growth and profitability.

"It's certainly been a challenging period for 7digital but we are now emerging from that with a clear sense of purpose and excitement. We have a well-defined strategy and we are very determined to execute it. I'm looking forward to taking over the reins from John with whom I have enjoyed working immensely. My confidence in our success is founded on both our new board, whose ambition and vision will drive the company forward with real energy," said Langworthy.

7Digital's shares were up 38.33% at 0.25p at 1204 BST.