Business information provider, Progressive Digital Media, says it will raise £20m through a share placing to fund acquisitions.
A total of 111,111,111 new ordinary shares have been conditionally placed with new institutional investors at a price of 18p per share, a premium of 7.46% to the closing price of 16.75p yesterday.
Simultaneously with the placing, Michael Danson, Executive Chairman and 83.89% shareholder, has entered into a capitalisation agreement to convert £8m of a £9.8m loan into shares. Following the placing and the capitalisation, Michael Danson's shareholding in will fall to 67.72%.
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Commenting, Danson said: "Progressive Digital Media is building a high quality global business platform and today's proposed placing, along with the capitalisation, will enable the company to accelerate its strategy of increasing its presence in profitable, high growth global markets via subscription based content."
The deal, which still needs formal shareholder approval, saw the stock rise 19.4% by 08:40. Progressive has had an impressive 12 months, rising 45% since last April
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