Fitbug outlines fundraising and debt reduction plan

29th Jun 2016 15:00

(ShareCast News) - Digital wellness technology developer Fitbug Holdings announced on Wednesday a proposed equity fundraising of around £2.61m before expenses.The AIM-traded company said the fundraising comprises a placing of 340,800,000 placing shares at 0.15p per share with institutional and other investors, and an open offer of up to 703,626,325 shares at 0.25p each."In order to provide shareholders who have not taken part in the placing with an opportunity to participate, the company is providing all qualifying shareholders with the opportunity to subscribe for the open offer Shares, to raise up to approximately £1.76m," the board said in a statement.At the same time, Fitbug's board proposed that £8.4m of its indebtedness to Kifin and NW1 Investments will be capitalised into 336,000,000 new ordinary shares at 2.5p per share.The exercise is intended to substantially reduce debt, provide additional working capital, stabilise the balance sheet and position the company to further deliver on its turnaround strategy, the board explained.