Press Releases & Company News

Red Advertising completes fund Raising

13/07/2007

The online classified advertising company Red Advertising Limited who own the generalist job board Redgoldfish Jobs and a number of other industry specific job boards have now concluded the final stages of their fund raising and share placing activities.

This follows on from Reds last official statement back in March when they confirmed the ongoing progress of their companies restructure and commencement of the share placing process.

Founder and Managing Director of Red, Richard Clarke, expressed his excitement at the level of interest of participation in the recent share offer. "We were oversubscribed and reached 'commitments in principle' for the whole amount of funding required within a few weeks of launching the placing offer”.

Richard then went on to comment that despite the high level of support shown for the placing he and his team had decided in the end to reduce the amount of share capital available to investors outside of friends and family in order to retain greater control of the company. “The biggest problem with fund raising of this nature is that you can quickly lose control of your company to small venture capitalists and outside parties that may not share the same long term goals for the company or share the same vision as you do. We have interesting plans for the future of the company due to be announced shortly and needed to be confident that all invested parties were going to remain with us for the long term”

Ultimately, it was decided that the majority of the fund raising was to be done by offering as much of the share capital as possible to family members and private investors and try to shore up as much of the remaining capital requirement by way of secured private bank finance hence limiting the companies exposure to venture capitalists and larger outside interests as much as possible – The recent placing has met this objective.

As a result of this placing the company can now move towards completing the technology integration of its sites and move to the next phase of its development. A further press release is expected shortly confirming the outcome of Red Advertising’s strategic review and how the company intends to position itself within the online classified job advertising market going forwards.

www.redgoldfish.co.uk

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