Zoo Digital Group PLC - London-based provider of cloud-based localisation and digital distribution services - Says it intends to carry out a fundraise via a placing through the issue of 7.0 million shares to raise proceeds of GBP7.0 million at a price of 100 pence each. The placing price presents a discount of 6.1% to Monday's closing price. Zoo will use funds to strengthen its commercial position by building balance sheet strength in order to further scale the business. Says proceeds will provide sufficient working capital in the current macroeconomic environment for at least the next 12 months.
"The directors continue to see accelerating and improving momentum within the business, with current market conditions presenting a unique opportunity to seize market share as the competitive landscape undergoes structural adjustment. While the company continues to benefit from the migration of back catalogues to streaming, the demand for new content is growing and when new title production resumes in earnest, the Board anticipates there being greater demand for Zoo's services," it says.
Current stock price: 106 pence
Year-to-date change: up 68%
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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Zoo Digital (ZOO)