LONDON (Alliance News) - Pinnacle Technology Group PLC Tuesday said it had raised about GBP0.9 million by placing 13.2 million new shares at 6.5 pence each, a placing that was done to facilitate a strategic investment by MXC Capital.
MXC said it subscribed for 5.9 million of the placign shares, which gives it a 10% stake in Pinnacle's enlarged share capital. It said it has also been granted seven-year warrants over a further 5% of Pinnacle's share capital.
"We have known Pinnacle for some time. We see an opportunity to work with management to drive the company's strategy, identify acquisition opportunities and accelerate its growth," MXC Capital Chief Executive Marc Young said.
Pinnacle said the issue price of 6.5 pence represents a 16% per cent premium to the closing middle market price of 5.625 pence on April 27.
"I am confident that the involvement of MXC Capital, with its powerful network of contacts in our industry, will generate a number of opportunities to grow our business. I look forward to working with them," Pinnacle Chief Executive Nicholas Scallan said.
Pinnacle shares were up 15.6% early Tuesday, one of the best-performing stocks on the AIM All-Share index.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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