LONDON (Alliance News) - Nektan PLC said Tuesday it has raised a further GBP2.75 million through the issue of GBP2.4 million of convertible loan notes, and a placing of 232,258 shares as part of a follow-on fundraising.
Nektan raised GBP7.1 million in April via a convertible loan note issue and a share placing, and GBP900,000 in a further loan note issue and placing in May.
On Tuesday, the company said it placed the new shares with Octopus Investments Ltd at a price of 155 pence per share. Octopus also subscribed for GBP600,000 of the convertible loan notes.
The convertible loan notes, a combination of non-VCT and VCT loan notes, were issued subject to the same terms as the company's previous issue in April.
In April the company said the VCT loan notes were convertible into new shares at a price of 209 pence, subject to the price per share for the 10 dealing days prior to conversion being equal to or greater than the conversion price. The non-VCT loan notes may be converted into shares in an amount or an integral multiple of GBP20,000 at the same conversion price. The notes attract accrued interest at a rate of 10% a year, paid quarterly in arrears.
Shares in Netkan were untraded Tuesday morning. They last closed at 153.80 pence.
The mobile gaming content developer said it will use the proceeds to support its working capital requirements and underpin its expansion in the US market via its US joint venture Respin.
"This additional funding, which attracted a number of new investors as well as the continuing support of existing shareholders, will be used principally to help Respin further capitalise on its first mover advantage," said Executive Chairman Gary Shaw.
"The company continues to see strong quarterly growth across all key performance indicators as Nektan maintains its progress and strong momentum in our key markets in Europe and the US," Shaw added.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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