Funds used for web development capacity, content for digital products
By Devika Patel
Knoxville, Tenn., Aug. 17 - Electric Word plc said it has negotiated a £1.32 million private placement of shares.
The company will sell 88.3 million ordinary shares at 1.5p each. The per-share price is a 7.98% discount to the Aug. 16 closing share price of 1.63p.
Proceeds will be used to increase web development capacity and additional content for new digital products, strengthen senior management resources and reduce bank debt as well as for general working capital.
"The proceeds from the fundraising will allow the company the scope and capital to speed up investments over the medium term to take full advantage of the group's opportunities over the next three years and enhance value within all three divisions," chief executive Julian Turner said in a press release. "This will have a short term adverse impact on profitability but is expected by the board to leave the businesses in a much stronger position in the medium term."
London-based Electric Word is a publishing company focused on educational topics.
| Issuer: | Electric Word plc
|
| Issue: | Ordinary shares
|
| Amount: | £1,324,500
|
| Shares: | 88.3 million
|
| Price: | 1.5p
|
| Warrants: | No
|
| Pricing date: | Aug. 17
|
| Stock symbol: | London: ELE
|
| Stock price: | 1.63p at close Aug. 16
|
| Market capitalization: | £5.98 million
|
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