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Business News Digital
7digital heading into administration next month, unless £4.5 million of new funding found
By Andy Malt | Published on Friday 28 June 2019
B2B digital music and radio production company 7digital will likely head into administration next month unless it can raise £4.5 million. The news comes after shareholders voted at the company’s AGM earlier this week to not issue any new shares in order to raise new funds.
“The company currently believes that it still needs to raise additional funds of at least £4.5 million by 31 Jul 2019”, said 7digital in a statement, following the meeting. “Failing which it is highly likely that the company would need to be placed into administration”.
The refusal of shareholders to allow the issue of new shares “creates greater execution risk for any subsequent equity raise by the company since further shareholder approval would be required in order to implement this”, it went on.
“Clearly, the directors are extremely disappointed with this unsatisfactory outcome and therefore intend to engage with the relevant shareholders, where possible, with a view to securing their support for [issuing more shares].
President of eMusic, Tamir Koch, has already pledged £1.3 million of the money required, on the condition that the remaining amount needed is found in time. 7digital has powered eMusic’s download store since 2016.
