Reach4entertainment to raise £2m in placing

Media and entertainment company reach4entertainment announced its intention to undertake a placing of new ordinary shares on Wednesday, at a price not less than 1.5p per ordinary share to raise up to £2m before expenses.

The AIM-traded firm said the placing, which will be undertaken within the company's existing share authorities, will be conducted by way of an accelerated book build, with Allenby Capital acting as sole bookrunner.

It said the placing will result in the issue of no more than 133,333,334 new ordinary shares.

R4e said the net proceeds of the placing will be used to establish the foundations for the next stage of the group's development, including leveraging the market leadership positions in London and New York to expand geographically, starting with Dewynters in Germany, launching a new data-driven marketing and analytics division, and the re-organisation of key functions to support the above developments.

“r4e is a different company today,” said chairman David Stoller, adding: “our balance sheet is healthy with an £11m reduction in borrowings at 30 June 2016 compared to 30 June 2015.

“We have strengthened our management team across our core businesses, which continue to be market leaders, and our strategic plan is in place.”