London digital music firm boosts expansion funds with £1m credit facility
A London digital music company has today announced that it is boosting its expansion funds by an extra £1m.
7digital, which specialises in B2B end-to-end digital music solutions, has entered into a £1m secured revolving credit facility with Investec Bank.
This adds to the £6m gross funds that the company has recently raised to progress commercial opportunities and expand into “strategic market verticals”.
The funds drawn attract interest, payable quarterly, at 6 per cent above the Bank Base Rate.
Tamir Koch, chairman of 7digital, commented: “We are delighted to complete this non-dilutive financing which, together with our recent oversubscribed equity raise, provides 7digital with a total of £7m in capital to progress our growth strategy.
“We thank Investec for forming this partnership which further demonstrates the potential of the business.”
Paul Langworthy, CEO of 7digital, said: “We are pleased to have secured this loan facility which will bolster our balance sheet further and facilitate our strategy to expand in rapid-growth industries of home fitness, artist monetisation and social media that consider music a core component to their loyalty and growth strategies.
“Having access to low-cost capital provides the financial strength and flexibility for 7digital to progress our articulated strategy, win new business and deliver shareholder returns.”
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