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£3.5 million Placing to Accelerate Growth, Conversion of Loan Notes and Grant of Options
Fitbug Holdings Plc, the AIM quoted provider of online personal health and wellbeing services, has announced that it has successfully raised £3,510,200 (before expenses) through Hybridan LLP by way of a placing of 39,002,224 new ordinary shares of 1 pence each in the capital of the Company at 9 pence per share.
The funds raised will be predominantly used to scale up the sales and marketing push for both the Orb and the Kiqplan sides to the business, to meet fast growing demand for wearable technology and complementary products. The marketing drive will begin immediately, with the Company attending the Consumer Electronics Show (CES) in January and activating various marketing campaigns. Part of the funds raised will be used to develop further Kiqplan programs, and Fitbug aims to build out the Kiqplan library by two plans per month. No director is selling shares as part of the Placing.
Fergus Kee, Chairman of Fitbug said, “The Company has come a very long way in a short period and has been overwhelmed by the support it has received from both new and existing shareholders. This is a period of significant opportunity for Fitbug. Through the recent retail agreements including Target Corporation and UK supermarket, J Sainsbury plc, the launch of Kiqplan, a digital health coaching platform, and a Partner Agreement with Samsung Electronics (UK) Limited, the business continues to gain momentum in a large and rapidly growing market place. The successful fundraising will enable the Company to build on its recent commercial and operational success to invest and accelerate our growth plans going forward and we look forward to being in a position to make further announcements.”
Conversion of Kirsh Group Loan Notes:
On 28 June 2012, the Company borrowed the sum of £1,000,000 from Kifin Limited, a Kirsh Group subsidiary, through the issue of the Loan Notes pursuant to the terms of the Loan Note Instrument. Under the terms of the Loan Note Instrument the Loan Notes are convertible into new Ordinary Shares, credited as fully paid, at a conversion price of 1.5p per share. Kifin Limited has notified the Company that it will convert 50% of the Loan Notes into new Ordinary Shares which, in accordance with the terms of the Loan Note Instrument, would result in the issue and allotment of 33,333,333 new Ordinary Shares, credited as fully paid at 1.5 pence per share. It is intended that the Loan Notes Shares will be admitted to trading on AIM at the same time as the Placing Shares.
