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(Alliance News) - Blackbird PLC on Friday said it will raise GBP5.5 million through a share placing to bolster presence in the US and develop new products.
The company, which sells cloud video editing platform Blackbird, has placed 39.6 million new ordinary shares at 14 pence per share, in two tranches.
Shares in the company were down 14% at 15.25p in London on Friday morning.
Blackbird plans to use the placing proceeds to increase its US marketing spend, recruit additional personnel in the US, develop new products and strengthen balance sheet.
The company's board believes the share placing will significantly enhance the ability of the company to deliver on its strategic plan.
Ian McDonough, chief executive, said: "The raising of funds is primarily to strengthen our balance sheet as we enter into larger and longer contracts with bigger companies. In addition, we want to build on the momentum to raise our profile in the US market, to strengthen the team in key pinch points across the organisation including US sales, operational delivery, support and an additional head in the development team."
By Tapan Panchal; tapanpanchal@alliancenews.com
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