ZOO Digital Group PLC (AIM:ZOO) said it has successfully raised £12.5mln through an oversubscribed placing of 7,812,500 new ordinary shares.
The provider of cloud-based localisation and media services to the entertainment industry said the shares were sold to new and existing institutional and other investors at a price of 160p each, representing a discount of around 13.5% to the middle market closing price of an ordinary share on 26 April.
"The success of this placing is testament to the quality of our business, our track record of delivering growth, and the strength of our relationships with existing and new investors," said ZOO Digital Group CEO Stuart Green in a statement.
"The funds raised will be used to invest in our technology, marketing and customer acquisition strategies, and will enable us to capitalise on the significant growth opportunities we see in the global entertainment industry," he added
The new shares represent approximately 8.7% of the issued share capital of the company prior to the placing. Existing major shareholders Herald Investment Management and Canaccord Genuity Wealth Management agreed to subscribe for 400,000 and 812,500 shares respectively, in the placing.
The company's nominated adviser, Stifel Nicolaus Europe Limited, and Singer Capital Markets acted as joint bookrunners for the placing.
The placing shares are expected to begin trading on the AIM market of the London Stock Exchange on 4 May.