Starcom raises funds to cover cash problem, announces new CFO

AIM-listed wireless technology company Starcom has raised £475,000 before expenses following a 4p-a-share placing.The proceeds will be used to solve its short-term cash problem and to provide additional working capital.As part of the placing, its chief executive officer (CEO) Avi Hartmann, chief technology officer Eitan Yanuv, and chief financial officer (CFO) Michael Rosenberg subscribed for 250,00, 225,000 and 150,000 shares respectively.Rosenberg also announced that it is planning to step down as CFO in order to focus on his other business interests and will be replaced by Ron Alroy from 15 June.Alroy, who will not be appointed to the board, has held key positions in several Israeli businesses and is the chairman of the Institute of Certified Public Accountants in Israel Committee for the enhancement of government accounting in Israel.CEO Hartmann said: "We are pleased with the support shown from our existing shareholders. As previously reported the majority of our products are now fully developed and we expect to see increased revenues flowing in the second half of this year."The second generation Watchlock is due to be launched in the fourth quarter of 2015 and revenues from this new version will mainly be achieved during 2016."