Audioboom (BOOM)  announced on Friday that its chairman Michael Tobin and Candy Ventures Sarl, Audioboom's largest shareholder, have agreed to provide the company a $4 million secured loan facility.

The London-listed company, acknowledged its history of equity fundraises, telling investors in a statement: “Historically, the growth of Audioboom has been financed by the issue of equity with consequential dilution to the Company's shareholders.” 

The board however said it was confident that the loan would ‘provide sufficient headroom’ to fund its growth strategy through to sustainable positive cash generation.

Under the company’s previous management, it carried out two equity fundraises in 2019, and another in 2018 after a failed acquisition.

A management shake up in September of 2019 saw previous CEO Rob Proctor step down, with Stuart Last taking over as interim CEO. 

Stuart Last, Chief Executive Officer of Audioboom, said: "I am delighted that our Chairman and largest shareholder have continued to demonstrate their support and belief in the Company's prospects and strategy.”

Shares in Audioboom were trading 9.41% higher at 232.5p on Friday

The $4 million loan facility was agreed with SPV Investments Limited, a special purpose vehicle owned equally by Tobin Ventures Limited (owned by Chairman Michael Tobin) and Candy Ventures sarl.

The facility, which constitutes a related party transaction under AIM’s listing rules, has a minimum draw down of $200,000, and an interest rate of 8%, secured against the assets of Audioboom. 

CEO Stuart Last said: “This non-dilutive financing should fund Audioboom through to sustainable positive cash generation and allows the management team to remain focussed on delivering further growth in what is an increasingly exciting market. “

“We have made a strong start to the year with bookings for 2020 ahead of management expectations."

In the company’s last trading update, it reported $22.2 million in revenue for the 2019 year, a 91% bump from the previous year numbers. 

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