Mirriad targets £1.5m raise and US joint venture

Published 13/05/2025, 16:38
Mirriad targets £1.5m raise and US joint venture

LONDON - Mirriad Advertising plc (AIM:LON:MIRI), a company specializing in in-content advertising and virtual product placement, announced plans to raise at least £1.5 million through a share placement. The fundraising initiative, aimed at both new and existing institutional investors, will offer a minimum of 15 billion new ordinary shares at a price of 0.01 pence each.

The company also intends to conduct a separate retail offer to its current shareholders, potentially raising an additional £0.2 million. This offer will be facilitated through the Winterflood Retail Access Platform (WRAP).

Furthermore, Mirriad has revealed non-binding heads of terms with a US technology firm for a joint venture. The agreement, still to be formalized, grants the US partner exclusive rights to market Mirriad’s virtual product placement services to its US media partners for a one-off payment of £0.2 million and subsequent revenue sharing.

The proposed fundraising is contingent on the successful completion of the joint venture agreement and the receipt of the JV partner’s contribution into escrow. The issue price is set at a significant discount of approximately 63.6% compared to the closing mid-market price of Mirriad’s ordinary share as of May 12, 2025.

The company has planned a general meeting, set for June 2, 2025, to authorize the directors to allot the new ordinary shares and disapply pre-emption rights. Subject to the meeting’s outcome and other conditions, the new shares are expected to begin trading on AIM around June 4, 2025.

Allenby Capital is managing the bookbuild process but will not underwrite the placement.

Mirriad’s board has stressed the importance of the fundraising, indicating that without it, the company is unlikely to continue as a going concern. The directors have warned that failure to complete the fundraising could lead to administration proceedings, which would likely leave little to no value for shareholders.

The announcement is based on a press release statement, and the detailed terms and conditions of the placement are outlined in the appendices of the announcement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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