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(Sharecast News) - Audio-visual creative company MediaZest completed a fundraising on Monday, raising £0.12m before expenses, to support the growth of its Dutch subsidiary.
The AIM-traded firm raised the funds by issuing 300 million shares to new and existing investors for 0.04p each.
It said the fundraising consisted of a placing facilitated by its sole broker, Hybridan, and a subscription to private investors.
The fundraising consisted of the placing of 250 million fundraising shares and a subscription to certain private investors for 50 million fundraising shares.
MediaZest said the issue price of 0.04p each represented a discount of 6% compared to the closing middle market price of 0.0425p on 5 January.
The net proceeds would be allocated to several key areas, including business development investments, marketing and sales recruitment, support for the growth of the company's Dutch subsidiary to explore new opportunities in the European Union, and the provision of additional working capital.
MediaZest said its current trading remained robust, with the company consistently securing recurring contracts on a store-by-store or dealership-by-dealership basis.
The value of its annualised recurring revenue contracts had risen, now standing at £0.7m per year, some of which were multi-year agreements.
Additionally, the firm's new European installations were primarily focused on generating strong recurring revenue streams and long-term contracts.
MediaZest said its operational business boasted multiple long-term blue-chip clients, positioning the company well for future growth.
The company said its Dutch subsidiary, launched in December 2022, had already started delivering projects, with EU orders exceeding €0.5m in the 2023 calendar year.
"We are delighted to have raised these additional funds from new and existing investors to invest in business development and to support the growth of the company's Dutch subsidiary," said chief executive officer Geoff Robertson.
"At the end of 2023, we had multiple large-scale projects in deployment or negotiation and over the last 12 months, we have seen that the maturing market in digital signage is opening up opportunities to consolidate.
"Moreover, the opportunity to grow in Europe through our new subsidiary has been exceeding our initial expectations."
Robertson said that as the company entered 2024, it believed it was well-positioned to prosper in each of the key markets in which it operates.
"[We are] seeing growth as follows; retail focusing on better stores with enhanced digital experiences; automotive by providing solutions as the industry transitions to EV and digital sales models; and the corporate office market as hybrid working continues to evolve by helping it to manage a greater reliance on audio visual technologies."
At 1125 GMT, shares in MediaZest were up 5.88% at 0.05p.
Reporting by Josh White for Sharecast.com.
