- 7digital Group plans to raise £8.5m through a placing, subscription and open offer.

It said the net proceeds would be used to capitalise on the growth opportunities of the company's B2B streaming platform services, restructuring aspects of the group's cost base following completion of the 24-7 acquisition earlier this year, with the balance to fund general working capital requirements and to strengthen the company's balance sheet.

The company intends to raise up to £6.5m, gross, through a placing of up to 163,405,661 new ordinary shares arranged by Arden Partners at 4p apiece with new and existing shareholders and £0.5m through an open offer to existing shareholders.

24-7 Entertainment, an existing shareholder, and a new investor has conditionally agreed to subscribe for 36,594,339 new ordinary shares at the issue price to raise £1.5m, gross.

The subscription is conditional upon £7.0m being raised pursuant to the placing and subscription.

It is the intention of certain directors to subscribe for approximately £0.2 million in the placing.

Story provided by