Breaking News

Aetna First-Quarter Operating Earnings $1.98 per Share, vs. Estimate for $1.55
Tweet TWEET

Kit Digital Cancels Share Sale Ahead of Prague Bourse Listing

Kit Digital Inc. (KITD), an online video technologies provider, canceled a sale of new shares in Prague, while keeping their plan to start trading of existing shares there after it raised $30.1 million in a U.S. listing yesterday.

The company will only start a dual listing on the Prague Stock Exchange on Jan. 25 and will not offer an issue of new primary shares, the company said in a statement today. Patria Finance AS, a Czech brokerage owned by KBC Groep NV, will be the issue’s market maker, it said.

The company, which is already listed on Nasdaq, announced yesterday it wanted to sell between 3.25 million and 5.25 million shares in Prague and in the U.S. to fund future expansion. The sale in Prague was to include a dual listing of existing U.S. shares and new primary shares, Kit Digital said.

Kit Digital has “opted not to pursue an issue of new primary shares” after a “successful $30.1 million U.S. offering” of “3 million shares” helped the company meet its objectives of “financing future acquisitions” and “fortifying our balance sheet,” it said.

Kit Digital will be the first company to join the Prague bourse since the listing of New World Resources NV, the largest Czech coking coal producer, in 2008.

Kit Digital fell as much as 15 cents on Nasdaq, or 1.4 percent today and was trading down 0.8 percent as of 10:30 a.m. in New York. The shares have lost 3.6 percent this year.

Kit Digital said it may still sell a “small offering” of shares or issue debt at a later date to help eliminate its warrants.

To contact the reporter on this story: Krystof Chamonikolas in Prague at kchamonikola@bloomberg.net

To contact the editor responsible for this story: Douglas Lytle at dlytle@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.