14th Oct 2020 16:35
(Alliance News) - Audioboom Group PLC on Wednesday said it is no longer seeking buyers and has closed its formal sales process as the podcast firm reports "encouraging continued growth".
In a stacked update, Audioboom also reported improved third quarter earnings and plans to raise GBP3.2 million.
Back in February, Audioboom hired Raine Advisors Ltd to evaluate a range of strategic options, including a potential sale of the company.
"The board considers that, given the time elapsed, and in light of the very encouraging continued growth and resilience to global events evidenced by today's trading update, it is in the interests of all shareholders to end the strategic review and formal sales process at this stage and focus on further organic growth. This does not prevent any parties approaching the company in due course, but this would no longer be within the framework of a formal sales process and the company will not be actively seeking prospective buyers," Audioboom explained on Wednesday.
On its third quarter, Audioboom said revenue rose 15% annually to USD6.5 million from USD5.7 million. Total revenue for the nine months to September climbed 18% annually to USD18.3 million.
Audioboom narrowed its third quarter adjusted loss before interest, tax, depreciation and amortisation to USD400,000 from USD1.0 million.
The company added that it received an approach from One Nine Two Pte Ltd, a Singapore-based investor over the prospect of taking a 10% stake in Audioboom at GBP2.25 per share, a 27% premium to its closing price on Tuesday.
Audioboom surged 13% Wednesday to 200.00p in London.
"Whilst the company's existing funding remained sufficient to take it through to its forecast cash breakeven position, this subscription will provide further growth capital for investment, principally in original content, aimed at driving additional growth in the medium term," Audioboom said.
The company will issue 1.4 million shares, raising GBP3.2 million in total. On admission, One Nine Two will hold a 9.1% stake in Audioboom.
By Eric Cunha; [email protected]
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