Immedia Group raises £1.1m to repay short-term debt

Multimedia and digital specialist Immedia Group has conditionally raised £1.1m, it announced on Thursday, to fund some debt as well as its general requirements.

The AIM-traded firm said the funds were being raised via a placing of 8,000,000 new ordinary shares at 10p each, and a subscription for 3,000,000 new shares, also at 10p each.

It said it was raising funds to enable the board to repay some short-term loan finance, as well as abortive transaction costs.

The majority of the money would be used to fund the company's general working capital requirements, the board confirmed.

“All of the directors consider that the placing will promote the success of the company for the benefit of its members as a whole,” the Immedia board said in its statement.

“Accordingly, the directors unanimously recommend shareholders to vote in favour of the relevant resolutions at the general meeting.”

At 1429 BST, shares in Immedia Group were up 83.45% at 26.6p.