SPA launched a proposed fundraising of up to £8m (net of expenses) via an accelerated bookbuild, intended towards strengthening the company’s balance sheet, continued customer momentum and share consolidation.
As a result, every 10 Existing Ordinary Shares are consolidated into one Consolidated Ordinary Share. The Placing is proposed at 3.75p/share (or 37.5p/share as adjusted), considering the impact of the Share Consolidation. The major share of the proceeds is likely to be invested into customer acquisition and the repayment of its current overdraft facility, consequently materially improving the company’s credit rating. The remainder of the proceeds is likely to be used for further development of its technology and for working capital purposes generally.
Andy Roberts, Non-Executive Chairman, commented: “Today’s placing provides the company with the resource to accelerate its objectives and will maximise the potential value of our cutting edge, patented technology with market-leading intellectual property.”