After this summer’s share rally, online video search index and ad firm Blinkx is issuing new shares equivalent to 7.5 of the company
London-listed, San Francisco-based Blinkx says: “The Placing is being conducted to further strengthen blinkx’s balance sheet and to provide additional funding to support blinkx’s growth strategy.”
Indeed, when it came to profit, Blinkx had been held back by the continuing necessity of investment costs.
But Blinkx is already expecting half-year operating profit to double on higher sales. The share placing seems designed to give Blinkx cash to spend on costs without having to dip in to existing reserves.
The number of new shares being issued is 23.2 million, but
the price is not yet announced. Major shareholder Autonomy will be buying.
Update: Blinkx confirmed that the issue raises £19.5 million ($31.2 million).