Shareholders of Diligent Board Member Services approved proposals to raise US$3 million ($6 million) through the issue of preferred shares.

Company president Alex Sodi yesterday said the move would give the firm "the financial security and edge to continue its strong performance in the board portal business arena".

Diligent will issue investment firm Spring Street Partners with 20 million shares of its newly created series A preferred stock for US10c a share and will issue 10 million of the shares to United States-based shareholder Carroll Capital Holdings.

Diligent listed in December 2007 with an issue price of $1 per share. The latest price was 14c.

Listed in this country and based in New York, the company produces Diligent Boardbooks, a web-based system to simplify board meeting materials.

Diligent made a US$11.8 million operating loss in the 2008 financial year.

Sales of US$2.93 million were up on US$1.73 million for the prior year, but operating expenses were US$12.87 million, including US$6.2 million in selling and marketing expenses and US$5.4 million in general and administrative expenses.

Booked annualised licence fees, which indicate the ongoing income generated by the company, were US$3.85 million at the end of 2008, compared with US$2.06 million at the end of 2007.