Fitbug shares slump as it secures £1.67m in new funding

(ShareCast News) - Shares in Fitbug Holdings fell sharply on Monday after the company said it has raised a total of £1.67m through a placing, share subscription and the issue of a convertible loan note.The company, which provides online personal health and wellbeing services, also said it has restructured its existing loans on more favourable, extended terms with a reduced interest rate.Fitbug raised £665,000 through the placing of 26.6m shares at 2.5p per share and £350,000 via a share subscription for 14m new shares at the same price by NW1 Investments.In addition, the company has agreed a new £650,000 convertible loan in favour of NW1 Investments, repayable by 31 July 2017 at a conversion rate of 3.25p per share.Fitbug chairman Fergus Kee said: "These new funds and attractive loan restructure terms significantly strengthen the company's financial position and prospects. We welcome new investors and thank longstanding shareholders, Kifin Limited and NW1 Investments Limited for their continued support."At 0937 BST, Fitbug shares were down 30% at 2.80p.