AIM-listed Mirada is to raise approximately £3.5 million through the placement of 28m shares at 12.5p per share.

The London-based firm said the funds would be used to help the company strengthen its position within the “rapidly growing” over the top market.

It wants to build on the momentum of its biggest-ever contract win an unnamed Latin American digital TV operator that it announced in May.

The monies will also be used to develop its product base and strengthen its balance sheet.

The company’s tools include its Iris TV-anywhere proposition and its XPlayer synchronisation tool (pictured) which is used manage content across platforms, red button interactivity and EPG triggering.

Mirada chief executive Jose Luis Vazquez said: “Having secured our largest contract to date, we see strong potential to build on a growing pipeline of work within the OTT market, which continues to grow rapidly. 

“The contract provides a significant reference point for us and there is huge scope for Mirada to build on the recent momentum.

“The new monies will help us to further strengthen our position within the market place and focus on product development and marketing initiatives as we look to service an increasing amount of larger contracts.”

The placing with institutional and other investors is subject to shareholder approval.

At the same time of the placing, and at the same price of 12.5 pence per share, 11.4% of the company’s shareholders propose to dispose of all their existing ordinary shares.