Shares of 7Digital Group Plc (LON:&DIG) today tumbled 25.4% to trade at 2.20p after the company revealed that it had raised £6 million through a discounted share placement and subscription offer.
The digital music and radio services group revealed that it sold 266.6 million new shares at 2.25p apiece, representing a 23.7% discount to yesterday’s closing price of 2.95p per share.
According to the company, the funds raised from the oversubscribed offering will be used to exploit growth opportunities within the home fitness, artist monetisation, and social media markets.
Tamir Koch, 7digital’s chairman said: “We are delighted with the outcome of this successful, oversubscribed fundraise and for the support we have received from both existing shareholders and a substantial number of new institutions. The proceeds not only secure the future of 7digital but also set the business up for a sustained period of growth, building on our leading global position in the expanding market of B2B music streaming.”
7digital share price
7Digital shares today fell 25.4% to trade at 2.20p having ended Wednesday’s session trading at 2.95p.