8th Jun 2018 16:06
LONDON (Alliance News) - Audioboom Group PLC on Friday said it will raise GBP4.5 million through a placing and subscription of new shares, as it reported a slightly widened annual loss.
The podcasting company intends to issue 150.0 million shares at 3 pence per share. Shares in Audioboom are currently suspended and are expected to resume trading on Thursday next week.
For the 12 months ended November 30, 2017, the company recorded a GBP5.0 million pretax loss versus GBP4.9 million pretax loss the year before. However, revenue more than trebled to GBP4.7 million from GBP1.3 million due to a sharp rise in advertising revenue.
The company remains positive about its future and said it "expects revenues for 2018 to show significant improvement on 2017" and that with the growth of podcasting and the company's relationship with companies like Google LLC and Apple Inc should lead to a bright future for the company and its shareholders.
Audioboom will issue new shares in three separate tranches.
The company has raised GBP2.1 million through a placing of 70.5 million shares. Subject to shareholder approval, it intends to further issue 66.2 million shares to raise GBP2.0 million and around GBP400,000 through a 13.3 million share issue.
The company expects to use the proceeds for general working capital purposes, to generate new podcast content, and develop a buy-side media agency. Non-Executive Director Roger Maddock has subscribed for 3.3 million of the second placing shares for GBP100,000.
Audioboom cancelled its acquisition of Triton Digital Canada Inc in May and will issue 16.6 million shares to Triton as part of its break fee. These will be issued concurrently with first placing shares. In addition, the company will also pay Triton GBP90,000 in cash.
Related Shares:
Audioboom Grp.