Music inspired fashion retailer EBTM is raising £850,000 at 1p a share.
These shares will account for 31.6% of the enlarged share capital.
The shares slipped 0.75p to 1.25p each following the news of the placing. That values the company at £3.36m prior to the placing. To be fair, the shares were slightly lower at the beginning of the week.
In July, EBTM raised £675,000 at 3.5p a share and more recently it sold its Lowlife brand for £200,000 and up to £100,000 in deferred consideration depending on global sales revenues reaching £1m in 2009.
Online revenues increased by 17% in the first 24 weeks of this financial year. The distribution business is finding trading tougher and EBTM is making savings of £600,000 a year. There will be a small first half operating loss but the business should still be profitable for the year as a whole.
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