LONDON (Alliance News) - 7digital Group PLC Monday said it has sold the remainder of its investment in Audioboom Group PLC for GBP1.9 million, which it plans to use to invest in its 7digital platform and to strengthen its working capital position.
The digital music and radio services company sold 58 millions shares and an associated 8.77 million warrants over Audioboom shares at a price of 3 pence and 1.5 pence respectively.
7digital acquired its stake in Audioboom through the reverse acquisition by UBC Media Group PLC in June last year. In combination with the GBP3.5 million it made from selling part of its stake in Audioboom last October, it has raised a total of GBP5.4 million from the investment.
"We are pleased that our initial investment in Audioboom has resulted in a significant profit for our shareholders. 7digital is in a dynamic business, growing fast and operating in a rapidly developing marketplace for digital music and radio services," said Chief Executive Officer of 7digital Simon Cole in a statement.
"Our board believes that rather than having an illiquid minority stake in another listed vehicle, the value and proceeds would be better invested in our own platform to accelerate our growth and allow us to take maximum advantage of the opportunities ahead," Cole added.
Separately, Audbioom said Candy Ventures sarl, in which Audioboom director Nick Candy is a director and majority shareholder, bought 16 million shares in the company at 3.0 pence per share last Friday. This takes Candy's interest in the company to 40.82 million shares, or a 7.62% stake in Audioboom.
Shares in Audioboom were up 11% at 5.00 pence Monday morning.
Nick Candy and his brother Christian Candy are British luxury property developers.
Shares in 7digital were untraded Monday morning. They last closed at 13.15 pence.
By Hana Stewart-Smith; email@example.com; @HanaSSAllNews
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