LONDON (Alliance News) - Fitbug Holdings PLC on Wednesday said it will raise GBP2.6 million through a share placing, as it announced the appointment of Interim Chief Financial Officer Tyler Tarr as part-time finance director and said it has started 2016 well.
The digital wellness technology developer said it will GBP2.6 million through the placing of 340.8 million shares at 0.25 pence each and an open offer of 703.6 million shares at the same price.
In addition, GBP8.4 million of existing debt to Kifin Ltd and NW1 Investments Ltd will be capitalised into 336 million shares at 2.5p each.
Shares in Fitbug were trading down 40% at 0.255 pence following the Wednesday morning announcement.
Fitbug said these finance activities will substantially reduce its debt, provide it with additional working capital, stabilise its balance sheet and position it to further deliver on its turnaround strategy.
The company said it has made an encouraging start to 2016, with GBP400,000 in corporate wellness sales in the first quarter, significantly above like-for-like sales in the same period a year before. Fitbug said it has a sales pipeline of corporate business that is worth in excess of GBP1.1 million over expected contract lifetimes.
In a separate statement, Fitbug said Tyler Tarr, who has been interim CFO since December, has now joined the board as part-time finance director with immediate effect.
"We have been working with Tyler for several months now and he has contributed considerably to Fitbug's turnaround strategy, to ensure we are ready for growth. He has proved himself invaluable in our thorough review of our operations to ensure we are maximising efficiencies, and has identified and is implementing a number of cost saving initiatives. He has also worked closely with and been well-received by many of our key customers and strategic partners, shareholders and potential investors," Chief Executive Anna Gudmundson said in a statement.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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