After being one of the best performing UK software and IT services stocks so far this year (see here), Parity's shares took a 13% dive this afternoon on confirmation that the company "is in advanced discussions with new and existing investors to raise funds in order to be in a position to pursue its previously announced strategy to acquire businesses in the UK digital media market" (see Parity buys into its digital dream). Further, management is looking to downgrade Parity's Main Market listing in favour of AIM. Parity previously raised £600k in a discounted share issue to pay out the owners of Shoreditch-based, self-styled “pioneering creative 3D technology company”, Inition in January (see here).
I had always believed that the idea of incubating a digital media play under the covers of an IT recruitment firm was a 'bold and courageous' strategy. But with the help of much needed therapy from Parity's born-again top team of Philip Swinstead and Paul Davies, I was learning to come to terms with my self-doubt (see Parity returns to a business of two (-ish) halves). It looks like more treatment is required.