Bidstack raises ?5m to support growth of video game ads

(Sharecast News) - Bidstack said it had raised £5m of new funds to support the video game advertising company's growth. The AIM-traded company placed 40m new ordinary shares with institutional and other investors at 12.5p a share. After paying expenses for the share issue the company will have more than £6m of cash.Shares in Bidstack fell 9.2% to 13.96p at 10:14 BST. It notified investors on 26 April that it was considering raising new funds to speed up development, hire coders, sign up more games and open offices on the US West Coast and in Asia.Bidstack's technology allows advertisers to target video game players through targeted native advertising that are part of the game's artwork. Gamers cannot bypass the ads, which can be adjusted and updated in real time, it says.James Draper, Bidstack's chief executive, said: "The business is now entering a period of accelerated commercial and technical growth. I am pleased that the placing gives us the financial resources to capitalise on our strong current position."I believe this will lead to an exciting period for those in and around the business and I look forward to sharing further information on significant team and commercial developments."Chairman Donald Stewart subscribed for 160,000 of the new shares and John McIntosh, finance director, signed up for 200,000 shares. The purchases will give Stewart 0.48% of the company and McIntosh 0.08%.