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SyndicateRoom starts GBP2.6m fundraise for Fitbug

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Equity crowdfunding platform SyndicateRoom is offering its members shares in AIM-quoted technology developer and digital wellness pioneer, Fitbug. SyndicateRoom will be the sole retail distribution agent for the fundraise and will offer EIS shares, on the same terms as institutional investors.

Fitbug plans to raise GBP2.6 million during this raise. GBP852,000 has already been raised through institutional investors, with up to GBP1.76 million to be raised via SyndicateRoom and other investors at the same issue price. The funding round is expected to close by 25 July 2016.
 
In August 2015, Anna Gudmundson was appointed Chief Executive of Fitbug. She is currently executing a turnaround drive for the business, moving the company’s focus away from delivering wearable devices to an over-saturated B2C market, and instead, capitalising on the growing global corporate audience for digital wellness. 
 
The US corporate wellness market is forecast to grow 8.4 per cent annually over the next five years to USD12.1 billion, which demonstrates the potential in other markets. Digital wellness initiatives have proven to lead to reduced corporate costs associated with absenteeism, and to increased employee productivity.
 
Fitbug has seen Q1 B2B sales over GBP400,000, an increase over like for like sales in Q1 of 2015, and anticipates a strong pipeline for the corporate market, forecasting in excess of GBP1.1 million over expected contract lifetimes. Fitbug has identified a low cost entry point to market and at the end of April 2016, the company had approximately 100,000 users of its digital products.
 
SyndicateRoom will provide Fitbug with previously untapped retail demand, in support of the company’s capital needs. The firm writes that as the only crowdfunding platform to have intermediary status with the London Stock Exchange, SyndicateRoom is the only alternative investment platform offering retail investors access to both the public and private equity markets.
 
Most recently, SyndicateRoom members participated in 3i Infrastructure PLC’s GBP385 million share placing, proving the platform is well placed to promote a diverse range of equity funding rounds, from early stage through to public companies.
 
Anna Gudmundson, Chief Executive of Fitbug Holdings Plc, says: “Having assessed a range of finance options to support our short-term and long-term working capital needs, we were particularly excited by the prospect of offering new shares to investors via SyndicateRoom. With its recent membership of the London Stock Exchange, SyndicateRoom is the only platform that could effectively distribute our shares direct to crowdfund investors, enabling us to expand the number of owner-advocates for our business as we focus on becoming a leader within this space by delivering an innovative app-based technology to enhance employee wellness.”
 
 
 

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