Digital music solutions firm signs £1.5m shareholder funding deal

7digital, a B2B end-to-end digital music solutions company, has signed agreements with three shareholders to provide an aggregate facility of £1.5m.

The facility is on standard market terms. It is convertible into ordinary shares at certain specified times prior to maturity in December 2019.

The funds provided will be used for working capital. It is also said that Juke Entertainment has entered into an agreement with 7digital to provide £0.75m of the aggregate £1.5m facility.

Simon Cole, 7digital’s CEO, concluded: “I am pleased to see such significant shareholder support for the business.

“The loan finance allows us to cover the short term costs of our restructuring. This restructuring takes an annual equivalent £5m of costs out of the business, consolidates our technology platforms after the acquisitions of the last two years, and should take us to the profitability and cash positivity which has been our aim for the last 18 months.”