LONDON (Alliance News) - Falanx Group Ltd shares fell Thursday after the company said it had raised GBP2.0 million in a subscription, money it will use to support and develop its cyber security operations.
In a statement, the security and risk management consultancy said it had issued 11.2 million shares at 18 pence each under the subscription, as well as one warrant for every two shares subscribed for, exercisable at 30 pence a share over the next three years.
Separately, the company said it had signed a deal with UK-based cyber security company Assuria Ltd for a global licence to use its suite of cyber security software products as part of Falanx's international cyber security proposition.
It has also entered a deal with MDS Technologies Ltd under which the companies will form a strategic alliance to develop new cyber security capabilities. MDS is a channel partner of Skyscape Cloud Services Ltd, which provides assured cloud computing services to UK government departments. MDS has specific expertise in providing data centre hosting and services to enable clients to move their computing and IT services into the cloud, Falanx said.
"Falanx management team has identified a clear demand within the UK and in its target regions of the Middle East and Asia for comprehensive cloud-based cyber security services. By deploying Assuria's excellent security software alongside an existing high-quality provider of assured cloud computing services, Falanx will be able to provide a seamless and cost-effective suite of services for both government and private clients," Falanx said in its statement.
Falanx shares were down 11.7% at 23.4 pence early Thursday, one of the biggest declines on AIM, sue to the new share issue. After issue, the subscription shares represent 21.8% of the company's share capital.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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