- Audioboom, the leading spoken word audio on-demand platform, increased revenues in the first half and announced it was in talks with Chinese fund for a strategic investment of up to US$8 million.

Revenue for the six months to the end of May increased to £329,000 (H1 2015: £46,000). The company produced an improved underlying operating loss, adjusted for the non-cash accounting treatment of share based payments, of £2.2m (H1 2015: £2.9m).

Net cash used in operating activities decreased to £2.2m (H1 2015: £2.7m), with cash management remaining a key focus within the business. Audioboom finished the period with cash reserves of £0.9m.

Other highlights:

- Major new ad network and distribution partners

- Positive outlook for H2 with booked revenue already exceeding total H1 revenue

- Cash reserves of £0.9m at period end - the Company is currently exploring equity funding options

- Group on track to meet market expectations for FY 2016

The group also announced it is currently in discussions with a Chinese fund for a strategic investment of up to US$8 million to be made at not less than 2.5 pence per share.

The funds received from the strategic investment are to be applied towards accelerating the growth of the Company and not for working capital purposes. The Board currently expects that a formal agreement will be entered into with the Investor and announced by the end of September 2016. The investment will be conditional on the chief executive Rob Proctor accepting a loan from the investor of approximately US$500,000 to be utilised in the acquisition of ordinary shares in the Company at the same price and at the same time as the subscription by the Investor.

The loan is expected to be repayable on the earlier of the date which is three years from drawdown of the loan or the purchase of 100% of all of the outstanding share capital of the Company (whether by the Investor or otherwise). The loan will accrue interest at five per cent. per annum and will be secured against Proctor's existing interest in the capital of the Company.

The aggregate holding of the Investor and Proctor post completion of the strategic investment is expected to be up to approximately 29.9 per cent. The Investor will have the right to appoint up to two directors to the Board of the Company.

Story provided by