Bidstack (AIM:BIDS) has raised £5.7m to fund working capital as the group expands its international presence and pursues ‘increased demand side interest’ from advertising groups.
The in-game advertiser raised £5.5m through a ‘significantly oversubscribed’ placing of 137.5m ordinary shares of 0.5p each at a price of 4p each, a 29% discount to its closing price on Thursday.
Certain directors of the group have also raised an additional £200,000 through subscription of 5m new ordinary shares at the placing price, now accounting for 12.65% of the enlarged share capital in the company.
Shares in Bidstack opened down at 4.5p on Friday morning.
The proceeds will also be used to grow the group's network of approved local agencies, engage with more game developers, advance next generation consoles, and capture the secondary viewing market.
The group added that it is working on the development of its proprietary AdConsole and continues to innovate and develop new technologies for its intellectual property portfolio.
Bidstack told investors that it ‘remains confident that it is making material progress in its approach to building a strong foundation on which to grow and create value for shareholders.’
The Board said it continues to expect revenues for 2020 to be ‘very significantly second half weighted’ and in line with market expectations for the year.
Follow News & Updates from Bidstack: