- Global influencer marketing company Crowd Media (CM8) has raised $4 million to accelerate growth and pay down its debt
- Subject to shareholder approval, the company will also issue $2.8 million in options, exercisable at 7 cents within two years of issue
- The company will use the funds to accelerate the research and development of its ‘Talking Head’ technology and boost inventory for its Crowd Direct eCommerce division
- CM8 will also strengthen its balance sheet and pay down its finance facility with Billfront by at least $750,000
- Crowd Media hasn’t yet come out of its trading halt pending the disruption to the ASX — shares last traded for 6.4 cents on November 12
Global influencer marketing company Crowd Media (CM8) has raised $4 million to accelerate growth and pay down its debt.
The raise
The placement was conducted under the company’s existing capacity, but comes in two tranches.
The company will issue 80 million shares all up.
Just under 56 per cent of the shares will be issued at 4.36 cents each, while the remainder will be issued at 5.8 cents, giving an average of 5 cents across the whole placement.
That’s a 25 per cent discount to the five-day volume-weighted average price before the raise.
Subject to shareholder approval, the company will also issue 40 million options exercisable at 7 cents within two years of issue. This approval is expected in coming months.
Evolution Capital acted as lead manager and will receive a 6 per cent fee plus 10 million options on the same terms as the placement, also subject to shareholder approval.
The placement shares should be issued by Thursday, November 19.
The spend
Crowd Media plans to spend the money on a few different growth initiatives.
The company will accelerate research and development of its ‘Talking Head’ technology and boost inventory for its Crowd Direct eCommerce division.
CM8 also plans to “drive opportunities in fintech and insuretech” to expand its commercial offering.
The funds will also be used to strengthen the company’s balance sheet and pay down its finance facility with Billfront by at least $750,000.
With $4 million in the bank, CM8 should be well funded to pursue its goals and firm up its bottom line.
Crowd Media hasn’t yet come out of its trading halt pending the disruption to the ASX — shares last traded for 6.4 cents on November 12.