LONDON (Alliance News) - Mi-Pay Group PLC Wednesday said it is raising GBP1.75 million before expenses in a placing of 7.6 million new shares at 23 pence per share, with the proceeds to be used for general working capital purposes.
In a statement, the payments company said the shares have been placed conditionally with institutional and other investors, with company directors to invest in 241,474 of the shares.
The placing price represents a discount of 16% to the closing mid-market price of 27.5 pence per share on Tuesday.
News of the placing, which is not underwritten, came along with a trading update in which Mi-Pay said it expects to report a fall in revenue to GBP2.7 million for 2014 from GBP3.3 million in 2013, citing underlying client growth in transaction being more than offset by the loss of a customer contract in 2013.
"Overall, the business has performed in line with the board's expectations for the year ended December 31, 2014," Mi-Pay said.
The company said it anticipates becoming cash flow break even on a monthly basis by the end of 2015, noting that the directors are "cautiously optimistic" on their outlook for the year as a whole.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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