WorldAudio has announced to the stock exchange it has “successfully raised $4.7 million by way of a combination of a placement of shares and secured debt funding to institutional and individual investors”.

The money has been raised by the placement of 15 million ordinary shares at 7 cents each and loans from directors Mark Cohen and Glenn Morris of $500,000 each.

The loans are to be repaid before June 30 next year.

WorldAudio Managing Director Andrew Thompson has told the Australian Financial Review’s Neil Shoebridge the $4.7 million will be used for working capital and “to fund the proposed digital migration initiatives”.

The Financial Review says WorldAudio is not expected to be given access to digital licences for a period of five years, with mainstream commercial stations and the ABC expected to be included in the first round of digital licences.

Commercial Radio Australia chief executive, Joan Warner says she is expecting the government’s plan to issue digital licences to be released at the CRA conference in October.

World Audio reported a $6.5 million dollar loss for last financial year on advertising revenue of just $175,189. According to the ASX statement: “The monies raised will be used for working capital and to fund the proposed digital migration initiatives”.

Sources estimate that the company is burning funds at a rate of around $120,000 a week. Which means it could exhaust these additional funds in about nine months unless its fortunes change considerably.

Meanwhile, Cohen has been appointed to the post of Executive Deputy Chairman.