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Troubled digital health business hopes to turn things around with new fundraise

Fitbug, the health tech and digital wellness firm, has announced it is seeking to raise £2.61m as it continues its turnaround following a poor 2015.

In an announcement to the London Stock Exchange this morning, the London-based tech company revealed it was seeking to raise equity through the placing of 340,800,000 shares at 0.25p a share, as well as an open offer of 703,626,325 open offer shares also priced at 0.25p.

The AIM-listed digital firm has also announced plans to turn £8.4m of its current indebtedness to investment groups Kifin Ltd and NW1 Investments Ltd into 336,000,000 of new ordinary shares at 2.5p per share.

In doing so, the group hopes to substantially reduce its debt and provide additional working capital as it looks to stablise its balance sheet after a steady first quarter which has involved a refocusing on B2B wellness contracts.

It said it had sealed corporate wellness contracts worth over £400k in Q1 of this year and was sitting on a pipeline of contracts worth in excess of £1.1m.

However, Fitbug, which specialises in digital wellness products including the Kiqplan app and the Orb watch, has warned that its poor financial performance last year means that if it fails to successful raise funds through this new initiative, it could face liquidation due to the difficulty in finding alternative financing arrangements.

It comes after the firm posted losses in its preliminary results earlier in the month as revenues dropped to £1.26m, down from £2.3 the previous year with pretax losses sitting at £6.3m.

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