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(Alliance News) - Rosslyn Data Technologies PLC on Thursday said it is to raise over GBP7 million via a conditional share placing, which will be used to strengthen its balance sheet during the coronavirus pandemic.
The AIM-listed data management and analytics services provider said it is to raise GBP7.3 million via the issue of 146 million shares at a price of 5.0 pence each. The stock closed up 9.5% at 5.20p on Thursday in London, giving it a market capitalisation of GBP10.0 million.
The company said net proceeds from the placing will be used in an increased sales and marketing effort to accelerate growth, including building the pipeline in Supplier Master Data Management.
Rosslyn said the placing is conditional and subject to shareholder approval to be voted on at a meeting on May 27.
Meanwhile, Rosslyn said it expects to be earnings before interest, tax, depreciation and amortization positive for the full year to April 30, but some delays in the signing of contracts due to the coronavirus have led to expected revenue of GBP7.0 million to GBP7.2 million for the year-end.
Further, Rosslyn said it will enter the 2021 financial year with anticipated annual recurring revenue in excess of GBP6.0 million, up from GBP5.4 million at the start of the 2020 financial year. It expects to increase its positive Ebitda result for the year while maintaining similar profit margins.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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