Business
Proposed Placing and Subscription to raise £2.8m
Proposed Placing and Subscription to raise £2.8m.
About this update from Audioboom Group Plc
[{"type":"text","content":"\n \nRNS Number : 4720X Audioboom Group PLC 30 April 2019 \n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 (\"MAR\"). IN ADDITION, MARKET SOUNDINGS WERE TAKEN IN RESPECT OF THE MATTERS CONTAINED IN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS BECAME AWARE OF SUCH INSIDE INFORMATION. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION.\n30 April 2019\nAudioboom Group plc\n(\"Audioboom\" or the \"Company\")\n \nProposed Placing and Subscription to raise £2.8 million at 2.5p per share\n \nDirectors' subscription participations and related party transactions\n \nNotice of Extraordinary General Meeting\n \nThe Board (\"Board\") of Audioboom (AIM: BOOM), the leading global podcast company, is pleased to announce that it has conditionally raised £2.8 million of new equity funding for growth, by way of a placing and subscription (the \"Placing and Subscription\") of 112,000,000 new ordinary shares in the Company (\"New Ordinary Shares\") at a price of 2.5 pence per share (the \"Issue Price\"). The Placing and Subscription are subject, inter alia, to shareholder approval at an extraordinary general meeting of the Company (the \"EGM\").\n \nIn order to support and continue the strong revenue growth experienced by Audioboom in Q4 2018 and Q1 2019, the proceeds of the Placing and Subscription will be used predominantly to accelerate the acquisition of established podcast content and their audiences, with a view to increasing the Company's gross revenues and gross margins in 2019 and beyond. In addition, funds will be used to develop further co-production content partnerships and Audioboom Originals productions, to deliver valuable original content.\n \nFurther information on the Company, its strategy and background to the Placing and Subscription is set out below in the extracts from the shareholder circular which will be posted to shareholders tomorrow (the \"Circular\").\n \nPlacing and Subscription Highlights:\n \n· The Company has conditionally raised £2.8 million (before expenses) through a conditional placing of 52,000,000 New Ordin...