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(Alliance News) - Sabien Technology Group PLC's shares surged on Tuesday as it reported it has raised GBP326,427 in a share subscription, and confirmed it is trading in line with expectations.
Shares in the energy reduction firm were up 43% at 0.12 pence each in London on Tuesday afternoon.
Investment company Truell Intergenerational Family Ltd Partnership subscribed to 296.8 million shares at a price of 0.11p each, a 26% premium to its closing price on Monday of 0.10p, Sabien said.
The proceeds will contribute towards the development of the company's internet-of-things product. Sabien also aims to enter the US market by entering partnerships with equipment manufacturers.
Truell will now own 25% of Sabien and the two companies have entered into a lock-in agreement.
Under the terms of the deal, Truell will be able to appoint two directors to the Sabien board. Should its stake in Sabien fall below 20% but above 10%, it will have the right to appoint one member to the Sabien board.
Turning to trading, Sabien said it is performing in line with expectations and affirmed it expects to report revenue of GBP1.2 million in the year ended June 30, up from GBP510,000 in financial 2018. It has also forecast making a small pretax profit compared with a GBP1.7 million loss in the previous year.
In the same announcement, the company said it has appointed Richard Parris as the non-executive chair. Parris was formerly the chair and chief executive of London-listed software and service company Intercede Group PLC.
John Taylor has stepped down as a non-executive director of Sabien, the company said.
Chief Executive Alan O'Brien said: "The board is very pleased to welcome Richard Parris as non-executive chair. Parris brings a wealth of experience in both listed company management and development of key markets such as the US. We are also very pleased to welcome the support of Edi Truell and the investment by Truell as a strategic shareholder, securing additional funding for the next stage of our development.
"While we believe our addressable market remains attractive, supported by our pipeline, Sabien requires greater financial strength to fully exploit these opportunities. With this fund raising, and under Parris's leadership, the company is in robust health, with exciting growth prospects."
