blinkx rights issue as losses mount
The video search company blinkx is offering increased stakes to existing shareholders to raise £5 million (E5.5m) after burning through £13 million of its cash reserve in the past year on infrastructure costs.
blink has seen its cash reserve plummet from $32 million to $10.7 million in the year to the end of September. In the six months to the end of September the reserves fell by $8 million. The share placing will see blinkx's largest shareholder, Autonomy, from which the company demerged in 2007, increase its stake from 19 per cent to 26 per cent.
Revenue at the video search company doubled to $13 million in the first six months of the year, but losses also doubled year on year to almost $7million over the same period. The company said that gross profits were up 88 per cent year on year in the first six months of 2009 to $8.48million.
blinkx said that the number of ad campaigns running around video content had increased 238 per cent year on year and the number of video streams delivered through partnerships increased by more than 170 per cent.