YOU On Demand, China’s first national pay-per-view and video on demand (VOD) platform, has closed a private placement of its common shares with a group of institutional and accredited investors.

The company received gross proceeds of $10,917,806 (£6.6m) through the sale of 124,065,972 common shares.

FIL Investment Management (Hong Kong) Limited ("Fidelity"), acting on behalf of various accounts, was the single largest investor and subscribed for 73,440,972 common shares. Fidelity's investment represents 9.4% of the company's issued and outstanding common stock.

YOU On Demand intends to use the proceeds from the financing to continue the development of its national pay-per-view and VOD platform in China, marketing and promotions, and for general corporate purposes.

Shane McMahon, YOU On Demand's chairman and CEO, said: “Fidelity's interest and involvement in YOU On Demand is a testament to the strength of our business and growth plan.

"This financing will allow us to execute our strategy of delivering premium content to the largest cable market in the world."