Video search platform Blinkx is mounting a share issue equivalent to 7.5 per cent of the company in order to try and raise at least £19.5 million (E27.4m). 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.”
Blinkx shares rallied recently when it announced it is expecting half-year operating profit to double against last year. The share placing seems designed to give Blinkx cash to spend on costs without having to dip in to existing reserves. Major shareholder Autonomy, from which the business was spun off, says it will be buying in the placing.