- Digital marketing business Crowd Media (CM8) will soon become debt-free after agreeing to pay back the €1.02 million (roughly A$1.67m) it owes to BillFront
- Crowd has agreed to pay out 100 per cent of the debt in the next 10 business days, using the funds raised through a recent placement
- The capital raising facility settled earlier this week, with $4 million worth of new shares issued to participating investors
- The company estimates it will save up to $200,000 by paying back the debt it owed to BillFront
- Additionally, Crowd's Chairman said in a recent address that the company was well funded for the future with almost $6 million in the bank
- Shares in CM8 are trading up 2.04 per cent worth 5 cents each towards the close of market today
Crowd Media (CM8) is on track to become debt-free very soon after agreeing to pay back the almost €1.02 million (roughly A$1.67m) it owes to BillFront.
The digital marketing business has agreed to bay pack that amount in full in the next 10 business days.
Crowd will pay back the debt using part of the $4 million it recently raised via a placement to investors.
The equity raise facility settled earlier this week, giving the company plenty of extra capital to play with.
CM8 said in today's debt update to shareholders that it expects to save around $200,000 in interest and fees by paying back the money to BillFront.
In the meantime, in a recent address to investors, Crowd's Chairman Steven Schapera stated that the company was sitting on almost $6 million worth of cash.
"Having just completed a $4 million capital raising at a price, representing a significant premium to when we first got involved, we are now sitting on almost $6 million in cash," he stated.
Steven has been running the business for around 14 months and said since taking over, he and his team have been focused on fixing the company's balance sheet.
"After heavy losses in FY19, we finished FY20 with a positive underlying
earnings before interest, taxes, depreciation and amortisation (EBITDA) of $140,000. We now have the funds to properly finance our R&D and become an innovator again, whilst also having the funds to invest in revenue growth capability," the Chairman added.
Shares in CM8 are trading up 2.04 per cent at 5 cents each towards the close of market today.