Audioboom drumming up £4m to consolidate revenue growth
Spoken word audio on-demand platform Audioboom is aiming to raise £4m in order to consolidate the company’s revenue growth.
Audioboom Group
250.00p
16:55 23/04/24
FTSE AIM All-Share
754.87
17:14 23/04/24
Media
11,966.12
16:59 23/04/24
The AIM-listed company said it would drum up £4m through a placing of 146.4m new shares and a subscription for up to 13.6m new shares at 2.5p per share, which both represent about 17.8% of its share capital.
About 40.61m new shares will be issued after the conversion of the company’s £812,274 loan note from Candy Ventures in January, subject to approval from shareholders at the next meeting on 6 April.
The funds raised will be used for working capital, technical development of its audio products and potential content acquisitions.
Roger Maddock, a non-executive director at Audioboom, and investor Candy Ventures intend to subscribe for up to 1.6m and 8m shares respectively in the subscription placing which amounts to about £40,000 and £200,000, respectively at each share worth 2.5p.
The new shares are expected to be admitted to trade on AIM on 7 April.
Chief executive Rob Proctor said: "This fundraise will enable another step change in the company's on-going revenue growth story. I am obviously delighted that follow-on investment by a number of our existing shareholders, and material investment from new institutional investors, recognises both the progress that we have made over the last year and the exciting sector that we are selling into.
“The investment will allow Audioboom to consolidate its rapid revenue growth, focused on US and UK operations. It should also enable us to further increase margins in the future by accelerating the development of our own ad-server technology."
Shares in the company fell 9% to 2.40p after just over an hour's trading on Tuesday morning.