LONDON (Alliance News) - Vitesse Media PLC on Tuesday reported a wider loss and slightly lower revenue as well as a potential GBP22.5 million share placing to make an acquisition.
The digital media and events business posted revenue for the 12 months to March of GBP2.6 million, compared to GBP2.7 million for the 14 months to March 2017.
Vitesse's pretax loss came in at GBP970,825, compared to GBP284,461 in the comparable period, due to increased depreciation and amortisation costs.
Vitesse said the results were a "step change" in the company's financial health, with proceeds from a GBP2.2 million placing last September helping put the firm back on a sound financial footing with all debt and loans repaid.
Another share placing is now planned: Vitesse is to place between 22.1 million and 28.1 million new shares at 80 pence each to raise between GBP17.7 million to GBP22.5 million. Trading in Vitesse shares is currently suspended in London.
This is to go towards paying for the GBP20.7 million takeover of InvestmentNews. Vitesse is to pay GBP12.3 million up front, with GBP4.6 million deferred, and then the rest to be paid in Vitesse shares.
The share placing is being run by joint bookrunners Stockdale Securities Ltd and Canaccord Genuity Ltd.
Since the transaction is deemed a reverse takeover under AIM market rules, shares in Vitesse have been suspended until the acquisition is completed, or it is reversed.
InvestmentNews, Vitesse said, is a "market leading" business information and data and insights brands in the US financial advisory and wealth management sphere.
Vitesse Chief Executive Simon Stilwell said: "We are delighted to announce the acquisition of InvestmentNews. Since I joined Vitesse last year, we have overhauled the management team as well as the strategy and this is the first major step in executing on our growth plan."
"InvestmentNews is a leading brand in its community, it fits well into the Vitesse stable and provides the company with the opportunity to pursue other bolt on opportunities to expand, especially in its events business. Its American presence further allows us to expand our reach geographically, a key aspect of our future strategy," he continued.
