Design Milk Co (ASX:DMC) to raise $2.45M, announces SPP

Design Milk Co (DMC) has received commitments to undertake a $2.45 million two-phase placement
The digital media company has also announced a share purchase plan (SPP) with aims to raise an additional $200,000
Under the placement, more than 408.3 million shares will be issued to sophisticated and professional investors at 0.6 cents
This price represents a 22 per cent discount to the five-day volume-weighted average price of 0.77 cents
In regards to the share purchase plan, eligible shareholders will be able to subscribe for up to $30,000 worth of shares at 0.6 cents
Design Milk is steady on the market and shares are currently trading at 0.8 cents

Design Milk Co (DMC) has received commitments to undertake a $2.45 million two-phase placement.

The digital media company has also announced a share purchase plan (SPP) with aims to raise an additional $200,000.

Design Milk entered a trading halt on Tuesday but did not disclose how much it would be raising or what the funds will be used for.

Under the placement 408,333,335 fully-paid ordinary shares will be issued to sophisticated and professional investors at 0.6 cents.

This price represents a 22 per cent discount to the five-day volume-weighted average price of 0.77 cents.

The placement will be undertaken in two phases with phase one to issue 70,448,275 shares which will be allocated on December 31.

Phase two, which is subject to shareholder approval, will issue the remaining 337,885,060 shares in February.

Design Milk will aim to raise $200,000 under the SPP with eligible shareholders able to subscribe for up to $30,000 worth of shares.

The plan will open on January 4, close on January 25, and shares will be issued on February 1.

Design Milk has also released a trading update in which it revealed it had substantial growth in monthly sales and audience.

In the past 12 months the company saw its audience grow from 8.1 million in December 2019 to more than 8.8 million in December 2020.

Furthermore, Design Milk saw November sales close 87 per cent higher than October, its previous number one sales month.

Design Milk is steady on the market and shares are trading at 0.8 cents at 12:35 pm AEDT.

Consumer Discretionary