Member Article

Fitbug raises £1.6m investment to support product enhancement

Fitness gadget manufacturer, Fitbug has successfully raised £1.66m through a combination of private investment, share placing and a new loan facility.

The Camden-based startup, which specialises in wearable technology for fitness enthusiasts, has raised £665k (before expenses) by way of a placing of 26,600,000 new Ordinary Shares in the Company at 2.5 pence per share.

Fitbug also secured £350k investment from NW1 Investments, which is subscribing for 14,000,000 new Ordinary Shares in the Company at 2.5 pence per share.

In addition, the startup has received a £650k convertible loan in favour of NW1 Investments repayable by 31 July 2017 at a conversion rate of 3.25p per share.

The agreed loan restructuring, which extends the term on main loans until 31 July 2017, reduces the future interest rate by 40%, and with interest forgiveness provides an interest saving of c. £300k in the current year.

Fitbug said the funds raised will support product enhancement and marketing and increase sales of the company’s integrated wearable health technology offering, including Kiqplan and Fitbug Orb.

Fitbug Chairman Fergus Kee said, “Fitbug and in particular Kiqplan, is uniquely positioned within the wearables market, including Smartwatches, which is forecast to grow to 148 million units shipped per annum by 2018. These new funds and attractive loan restructure terms significantly strengthen the Company’s financial position and prospects. We welcome new investors and thank longstanding shareholders, Kifin Limited and NW1 Investments Limited for their continued support.”

In February, Fitbug prepared itself for a full-year loss after heavy investment in R&D, despite a 310% sales increase for the full 2014 financial year.

This was posted in Bdaily's Members' News section by Ellen Forster .