Bidstack confirms it's considering a fundraising

Digital advertising group Bidstack confirmed on Friday that it is considering raising funds through a placing of new ordinary shares following indications of interest from a number of potential investors.

If raised, the new funds would be used to accelerate its technical development curve to address some of the "significant" new opportunities opening up and to grow the size of Bidstack's technical development team and hire developers who can code in languages such as unity and react native and have expertise with technologies which Bidstack does not currently use.

The funds would also be used to accelerate the company's "land grab" by giving it increased resource to deal with and sign up more and bigger games and to ramp up its marketing efforts to major brands.

"The company is experiencing high levels of interest in its business model from games publishers, developers and other leading technology businesses," it said.

"The group's strategic challenge is about speed and execution. What Bidstack is doing now has never been done before, giving us a first mover advantage in the commercialisation of programmatic native in-game advertising.

"The board is exploring the investment opportunity with which it has been presented to ensure that Bidstack has the resources, connections and personnel required to maximise the considerable commercial opportunity currently available to it."

Bidstack said there can be no certainty that any fundraising will proceed.

At 1300 BST, the shares were down 21% to 13.60p.