LONDON (Alliance News) - Corero Network Security PLC Thursday said it has raised GBP8 million through a firm placing and subscription, and will raise up to a further GBP1 million in an open offer, as it reported a slightly widened loss for 2015.
The cyber security firm said it had raised GBP8 million through the placing and subscription of 36.4 million shares at 22 pence each. Shares in the company were down 10% at 24.66 pence Thursday morning, shortly after market open.
Corero said the placing was "significantly oversubscribed", and it saw strong support from both existing and new institutional investors.
It is offering up to 4.6 million shares in the open offer at the same price to raise up to GBP1 million.
For 2015 Corero reported a pretax loss of USD11.2 million, widened slightly from a pretax loss of USD10.1 million, as a rise in revenue to USD8.3 million from USD7.5 million was offset by higher depreciation and amortisation.
Corero has switched its focus to centre exclusively on its SmartWall TDS product, and 2015 was the first full year following this transition. During the period it sold Smartwall TDS to over 20 service providers, hosting providers and enterprises, it said.
Trials of the product are being conducted with further potential customers, and momentum has continued into 2016, Corero said.
"This backdrop of accomplishments in 2015, and the fact that we are currently engaged in a number of even larger opportunities with new customers, gives Corero confidence that it can deliver strong revenue growth in 2016 and beyond," said Chief Executive Officer Ashley Stephenson in a statement.
Corero plans to use the proceeds of the fundraising to help support the marketing and further development of the SmartWall TDS product, and also for its general working capital.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Corero Network (CNS)