ZOO aims for £1.7m

Chief executive: Dr Stuart Green
Chief executive: Dr Stuart Green
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ZOO Digital, the Sheffield-based DVD software specialist, is seeking to raise £1.7 million to fund growth in new markets.

Film makers use the firm’s software to produce multilingual versions of DVDs and Blu-ray discs, packaging and promotional materials for global markets.

ZOO recently incorporated an ‘eBook Builder’ into its software, giving publishers an efficient and cost-effective way to produce, sell and deliver electronic versions of conventional printed books.

The eBook Builder can cope with everything from picture books, comics, travel guides and cookery books to reference works, allowing versions in different languages to be stocked and sold by a number of different eBook vendors.

ZOO announced in June that it had begun working with a number of traditional publishers in the US and Europe to enable existing books to be sold online.

Chief executive Dr Stuart Green said: “New opportunities continue to present themselves and it has become ever more apparent that our solutions are relevant to a wide range of industries outside of our traditional stronghold of Hollywood.”

Furnival Square-based ZOO aims to raise the £1.7 million by placing 4.25 million ordinary shares at 40p each. It is also seeking approval to restructure its outstanding convertible loan notes, worth £3.54 million, which were due to mature at the end of October.

If loan note holders give the go-ahead, £1.77 million worth of notes will be converted into 4,426,250 new ordinary shares in the business and the term of the remaining £1.77 million worth of notes will be extended to the end of October 2013.

News of the share issue came as ZOO announced earnings before interest, taxes, depreciation, and amortization up from £980,000 to £1.4m on a slight drop in sales from £9.2m to £8.6m.