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Rightster plans to raise £10mln for next stage

Published: 17:05 18 Dec 2015 GMT

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The firm is focused on on-line video marketing

Rightster (LON:RSTR), the YouTube marketing specialist, unveiled plans to raise £10mln in a discounted placing to take the business forward.

It follows the conclusion of a strategic review last month.

The company wants to transform from a third party technology provider to a business capturing advertising spend using its expertise in online video content and audience management.

This will allow global reach among Millennials - people born in the 1980s and 1990s, as well as the younger generations, it reckons.

The path to profitability will focus on rationalisation to focus on enterprise-level customers, investing in owned and operated channels, and generating additional revenues.

Rightster currently expects to use £5.5mln of the funds raised to invest in owned and operated channels and to provide working capital.

A further £2mln will be used on restructuring costs and the remainder will be used to fund an employee benefit trust and provide for professional fees and contingencies.

Rightster chief executive Ashley MacKenzie said:  "Richard and I joined the board just a month ago and shared our vision for the business with existing and new institutional investors.

"They embraced the change and are now investing £10 million so Rightster can move into a more exciting and commercially efficient direction. I'm hugely excited to be leading the company in to the next stage of its growth."

The firm plans to issue 200mln shares at 5 pence each, represents a discount of around 47.4% to yesterday's closing price of 9.5p each.

Shares closed today at 7.5p.

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