LONDON (Alliance News) - Starcom PLC said Wednesday that it has conditionally raised GBP365,000 in gross proceeds via placing 14.6 million new ordinary shares at 2.5 pence per share.
The company, which specialises in the development of wireless solutions for the remote tracking, monitoring and protection of assets and people, said net proceeds will be used to build on continuing strong revenue growth and to negotiate more favourable terms with suppliers.
"The funds from the placing will primarily allow us to respond to market demand for our products, while giving us more negotiating power with our suppliers. The accelerated launch of the Watchlock Cube, some three months ahead of schedule, means that an increase in manufacturing is highly likely and we believe it prudent to be prepared for this possibility," Chairman Michael Rosenberg said.
"The increase in revenues which the board reported at the end of [first-quarter] in its AGM statement on 9 April is continuing into the second quarter," he added.
Starcom shares were trading 1.0% higher at 2.65 pence each on Wednesday afternoon.
Star Energy (STAR)