AIM-listed 7digital, the B2B, end-to-end digital music solutions has entered into a £1m secured revolving credit facility with Investec Bank, adding to the £m gross funds raised recently, to progress commercial opportunities.
The firm’s tech powers music streaming services and supports new models and formats for music consumption, and will expand into strategic market verticals such as home fitness, artist monetisation, and social media with the new funding.
The reports that it entered the second half of the year with increased customers and has identified particular opportunities for the business to power music-based experiences in after a signing a contract with social media app Triller, the recent launch of eMusic Live and a partnership with Apex Rides.
Tamir Koch, Chairman of 7digital, said: “We are delighted to complete this non-dilutive financing which, together with our recent oversubscribed equity raise, provides 7digital with a total of £7 million 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, added: “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.”