News blog

Digital Learning Marketplace / Shidu Group

• BY: Andrew Hore |
• POSTED: 08/10/2012 |

Digital Learning Marketplace could not raise enough cash to push ahead with a programme of acquisitions to grow its digital learning business and instead it is demerging this business and the quoted entity will become a shell. 

The share price more than halved to 9p, valuing DLM at £190,000.

DLM tried to raise £2m but it failed. Chief executive Andy Hasoon subsequently resigned in August.

The digital learning business should be able to do better without the additional costs of a quoted business. A £350,000 contract was won during the summer and further orders are anticipated. Existing shareholders in DLM will have the same shareholding in the private company.

Net debt was £167,000 at the end of June 2012, while net liabilities were £1.2m. DLM did manage to raise £277,000 at 0.1p a share in August.  One of the company’s subsidiaries undertook a creditors’ voluntary announcement.

Additional cash will be raised through a £250,000 zero-coupon, convertible loan note repayable at the end of June 2014. Full conversion would equate to 81.8% of the enlarged share capital.

DLM is changing its name to Shidu Group.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFSeptember2012_36.pdf