London-based Vitesse Media has used its listing on the Alternative Investment Market to raise new funds for development.
A placing of new ordinary shares at 2.2p per share is set to raise £265,000, of which £250,000 is being set aside to create a crowdfunding platform aimed at small and medium-sized businesses.
Leading the institutional investment is Derek Stewart, former CEO of Mellon Global Alternative Investments at BNY Mellon. According to Vitesse Media, the parent company of GrowthBusiness, Stewart will be working with the company to develop a ‘new and innovative’ way of facilitating investment to SMEs seeking finance.
Sara Williams, chairman of Vitesse Media, comments, ‘This growth opportunity has considerable synergies with Vitesse’s existing SME-focused digital media and events businesses.
‘This is a natural extension of our philosophy of “bringing investors and entrepreneurs together” and combines the strength of our existing brands and relationships with the new team’s experience in investment and technology.’
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Under the terms of the new crowdfunding venture, Vitesse will own the intellectual property relating to the platform and the right to earn 75 per cent of the net income.
The first portion of the investment is predicted to take place on 31 January 2014, with the second one occurring on 7 March following the passing of resolutions at a general meeting of shareholders on 28 February.
