Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Audioboom Raises Nearly $13 Million For Expansion, New Apps

Digital social media audio platform Audioboom Group PLC (BOOM.L) announced it has raised nearly $13 million (£8 million) fresh capital infusion from new and existing institutional and other shareholders to finance the firm's expansion. The new funds will be used to support global roll out of new app, geographical expansion, creation of Hispanic app, web site and content, expansion of curation teams and roll out of aggregated audio advertising network, Rob Proctor, CEO of Audioboom said in a press statement. Proctor, CEO of Audioboom, commented, "Since Audioboom was admitted to AIM in May 2014, we have been overwhelmed by the response and take up of the platform. Audioboom served over 260 million page impression in August 2014, making it one of the UK's largest digital media platforms. I anticipate that the new app and new content deals will quickly drive this figure significantly higher. "I am delighted that the Placing was heavily oversubscribed and to have received the backing of both existing and new institutional and private investors. Our substantial balance sheet will now allow the accelerated global growth of our platform, major expansion of our aggregated audio advertising network and the roll-out of the new Audioboom app, which I believe will revolutionize the digital consumption of audio." Specifically, Audioboom plans to launch a global roll out of its app in all formats, as well as accelerate the company's geographic expansion, including the growth of the New York and Sydney offices and a new office in Mumbai. Proctor explained that the new money would allow the creation of a bespoke app, web site and content specific to Hispanic partners and users, opening up major opportunities in both the North and South American markets. With the fresh fund, Audioboom plans the expansion of its content curation teams to ensure the best audio content is syndicated around the world; and accelerate the roll out of the world's first aggregated audio advertising network through Audioboom's content partners Proctor continued that the fund was raised by issuing 64 million new ordinary shares of no par value in the Company at a price of 12.5 pence per share. The New Shares have been placed with institutional and other investors by the Company's Nomad and Broker, Arden Partners plc. The Placing is conditional, inter alia, on the admission of the New Shares to AIM. The New Shares will rank pari passu in all respects with the existing ordinary shares. Application has been made for the admission of the New Shares to trading on AIM. In order to satisfy demand, the Company has also agreed to release 7digital PLC from the lock-in arrangements entered into at the time of the acquisition of Audioboo Limited in May 2014. 7digtal has conditionally placed 29,029,307 existing Ordinary Shares through Arden Partners at 12.5 pence per share. 7digital will retain 58 million ordinary shares, representing 10.9 per cent of the enlarged issued share capital of the Company. The placing of Sale Shares is subject only to the Placing becoming unconditional. Audioboom is a SaaS based digital social media audio platform enabling the creation, broadcast and consumption of audio across multiple global media outlets. Audioboom works with some of the biggest names in broadcasting across sport, entertainment and current affairs to bring their content to millions of listeners worldwide via Facebook, Twitter and other media platforms. The technology allows partners to embed playlists onto their sites and apps, use our mobile apps and functionality as listen again players and re- syndicate their content around the web. Audioboom also allows the monetisation of audio via the dynamic insertion of pre and post roll advertising into content as a user is listening, allowing contemporary advertising selection, depending on content genre and geographic location of the user. Audioboom has over 1,700 content partners, including the BBC, Telegraph, Guardian, CBS, Sky Sports, Premier League, Southern Cross Austereo, Reuters, CNBC, Universal and Fox.