Audioboom to raise up to £4m

Audioboom has conditionally raised a total of up to £4m, gross, through a proposed placing and subscription of shares at 2.5p per new ordinary share.

The company also announced that it intended to convert in full all amounts that have been drawn down by the company under the convertible loan note issued to Candy Ventures SARL as announced on 25 January.

It said the amount for conversion would comprise £812,274, which would be converted into 40,613,698 new ordinary shares.

The company said the fundraising would comprise a conditional placing of 146,400,000 new ordinary shares and a conditional subscription for up to 13,600,000 new ordinary shares.

The net proceeds would be used for working capital; technical development; content acquisition and creative initiatives.

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.

"This is an exciting time for the podcasting industry globally and I am proud to be running a UK-based company that is at the forefront of shaping the sector."

At 9:17am: (LON:BOOM) Audioboom Group share price was -0.25p at 2.38p