SEEEN Plc (AIM: SEEN) shares climbed 15% to 5.50p after the video technology company announced a $700,000 financing agreement and a new reseller partnership with Breeze Financial, aimed at expanding revenues at its GTChannel subsidiary.
Under the financing arrangement, GTChannel will receive $700,000 and repay a total of $860,000, with the borrowing secured against revenues generated from its services supporting digital content creators.
The $160,000 difference between the funding received and the total repayment obligation represents a financing cost of approximately 22.9% of the amount advanced, although the effective annualised cost will depend on the repayment schedule.
Alongside the financing, Breeze Financial has committed to introducing creator channels representing $600,000 in annualised revenue within two months.
SEEEN said the commitment would represent at least 10% growth in GTChannel’s expected 2027 revenues compared with anticipated 2026 levels, providing an opportunity to expand the subsidiary’s business without significantly increasing its operating cost base.
The company expects to support the additional channels using its existing infrastructure, allowing incremental profits to contribute towards meeting the financing obligations.
Management anticipates that profits from the new business, together with reinvested cash, will cover interest payments during 2027, before accounting for any additional growth generated through the partnership.
The arrangements are therefore expected to make a positive contribution to earnings next year, subject to the successful introduction of the new channels and delivery of the anticipated revenues.
The agreement also provides Breeze Financial with an incentive to deliver business beyond its initial commitment.
SEEEN has conditionally agreed to grant warrants over 1.5 million ordinary shares at an exercise price of 10p each, provided Breeze introduces creator channels generating average monthly revenues of $350,000 over three months.
That performance threshold is equivalent to an annualised revenue run rate of $4.2 million, substantially above the initial $600,000 commitment.
If exercised in full, the warrants would generate £150,000 in additional funds for SEEEN, although they would also result in the issue of new shares and dilution for existing shareholders.
The warrants remain conditional on the required commercial performance being achieved and do not represent guaranteed future funding.
For SEEEN, the combined financing and reseller agreement provides immediate access to growth capital alongside a route to expanding GTChannel’s creator services business.
The arrangement could strengthen recurring revenues if Breeze delivers the anticipated channel introductions and GTChannel maintains profitability without a corresponding increase in overhead expenditure.
However, the financing creates a defined $860,000 repayment obligation, while the forecast revenue and earnings benefits remain dependent on successful commercial execution.
The next milestones will be the introduction of the initial $600,000 in annualised creator-channel revenues and progress towards the higher $4.2 million run-rate threshold, as SEEEN seeks to translate the partnership into sustained growth at GTChannel.
