Extra funding secured for listed digital marketing firm
Sheffield-based digital marketing business Jaywing has reached a deal with entities associated with its two major shareholders to provide an injection of working capital.
The major shareholders have acquired the company’s existing secured loan facility of £5.2m owed to Barclays Bank.
They have immediately provided the company with additional secured facilities by increasing this facility by £3m to £8.2m. This has enabled Jaywing to repay its outstanding overdraft and provide it with additional capital.
Jaywing, which also employs many people in Leeds, says the extra finance ensures it is in a much stronger financial position not only to meet its short-term financing requirements, but also to continue realigning the business and its products to client demand.
The major shareholders have indicated their ongoing support for the business.
Commenting on the deal, CEO Rob Shaw said: “I’m pleased we have reached a positive conclusion to our negotiations and secured this deal for Jaywing’s future.
“It comes at a time when many agencies are struggling financially on the back of difficult trading conditions. By addressing this funding challenge now, we have put the company in a strong position relative to its competition, which should make Jaywing even more attractive to both clients and talent.”
The company announced that it was in negotiations to secure a deal at the end of August.
