PDM to Fund Acquisitions through £20m Share Placement

UK business information, research services and marketing solutions firm Progressive Digital Media (PDM) is aiming to raise £20m through a share placement, which it will use to finance acquisitions in the business information market.

London-based PDM was formed in June 2009 through the reverse acquisition of online marketing services group TMN Plc.

The firm's Business Information unit includes research agencies ICD and the iD Factor, which have been integrated into soft drink and alcohol consultancy Canadean which PDM acquired in 2010. Last month, the division reported 2011 revenues of £48.2m (2010: £39.5m).

In addition to financing acquisitions, funds raised from the share placement, will be used to partially repay the company's borrowings.

Placing will be effected by the issue of 111,111,111 new ordinary shares of 0.01 pence each, which have been placed with new institutional investors at a price of 18 pence per placing share.

Additionally, PDM Executive Chairman Michael Danson (pictured) is planning to reduce his 83.89% shareholder in the company to 67.72%, through a capitalization agreement to convert £8.0m of a £9.7m loan into 44,444,444 ordinary shares.

Danson comments: 'Progressive Digital Media is building a high quality global business platform and today's proposed placing, along with the capitalization, will enable the company to accelerate its strategy of increasing its presence in profitable, high growth global markets via subscription-based content.'

Yesterday, the firm's share price closed at 16.75 pence. Both the share placing and the capitalization are conditional on shareholder approval.

Web site: www.progressivedigitalmedia.com .