Fitbug thrown lifeline by departing founders

Fatigued fitness tracking firm Fitbug left investors short of breath again today as its founders threw it a funding lifeline before jumping ship themselves.

The cash-strapped AIM firm, which has chosen to focus on corporate clients, is raising £2.6 million via a heavily-discounted placing and open offer with institutions.

The fundraiser at 2.5p per share is being underwritten by NW1, an investment vehicle controlled by health club entrepreneurs David Turner and Allan Fisher, two of Fitbug’s founders.

The share price slumped 0.17p or 39% today to 0.259p, dragging Fitbug’s market value below £1 million for the first time. Shares have crashed 94% in a year.

The company confirmed that Turner, one of LA Fitness’s founding members and Fitbug’s former chief executive, and Fisher, behind Holmes Place, are leaving the board “to pursue alternative business opportunities”.

The £9.2 million in loans they provided Fitbug will be turned into shares. The UK Takeover Panel has waived their requirement to launch a full takeover bid.