LONDON (ShareCast) - (Sharecast News) - Audioboom responded to recent online commentary on Friday, after rumours circulated that the podcasting company was mulling an equity fundraising.
The AIM-traded firm said that, in order to support and continue the strong revenue growth it saw in the fourth quarter of 2018 and the first quarter of 2019, and to capitalise on the opportunities available to it in the growing podcast market, it was currently working on completing a placing and subscription of new ordinary shares at a price of 2.5p each, to raise up to about £5m in new capital.

It said it intended for the proceeds of the proposed fundraising to be used primarily to sign new third-party podcast talent.

"The proposed fundraising will enable the company to offer, where appropriate, competitive financial incentives for leading podcast talent to join Audioboom's platform," the board said in its statement.

"These incentives could, in certain circumstances, include fully recoupable up front advance payments."

In addition to the proposed fundraising, Audioboom said it was also exploring potential non-equity means to support the acquisition of new podcast talent, involving a third party guarantee facility.

Such a facility would enable the firm to arrange for minimum revenue guarantees to be provided to leading content partners, without significantly affecting its cash position.

"There can be no certainty that the fundraising or the guarantee arrangements referred to above will be concluded nor as to the timing, terms, pricing or size thereof," the directors added.

"However, the board welcomes the indications of support for the fundraise at the proposed price that have been recently received from existing and new investors who recognise the podcast market's dynamics and Audioboom's growth potential."

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE