Last checked at 6 Feb 2013 07:00
6 February 2013
Pinnacle Technology Group plc
("Pinnacle" or the "Company")
Placing to raise £2,650,000
Pinnacle Technology Group plc, (AIM: PINN) the AIM listed provider of cloud based technology solutions is pleased to announce that it has issued 883,333,333 new ordinary shares of 0.1p each to raise £2.65 million before expenses by way of a placing that was oversubscribed. The funds are being raised from both existing and new investors.
Objectives of Placing and uses of funds
The net proceeds of the Placing will be used primarily for working capital purposes, to bring forward the implementation of the Company's growth strategy through the hiring of additional sales expertise to capitalise on the cross selling of the enlarged product suite into an already extensive base of around 3,000 customers. This strategy is designed to mitigate customer risk, strengthen customer relationships and ensure continuing high quality and visibility of earnings.
Alan Bonner, Chief Executive said, "We are delighted, in this difficult economic climate, to have secured the level of support that we have received from existing investors, as well as new institutional investors who have participated in the placing. The placing will transform the Company's balance sheet, and will provide Pinnacle with the necessary funding to advance our cross selling programme allowing us to expand the business further. Support from high quality institutions has demonstrated the strength of the Company, and we look forward with confidence to delivering investor value and share price appreciation"
The new shares will rank pari passu with other ordinary shares and application has been made for the new ordinary shares to be admitted to trading on AIM, which is expected to be on 11 February 2013.
For further information please contact:
Pinnacle Technology Group plc | 0845 180 7474 |
Alan J Bonner, Chief Executive | |
Zeus Capital | |
Corporate Finance: Ross Andrews | 0161 831 15 12 |
Institutional Sales: John Goold/Alex Davies | 0207 016 8925 |
Newgate Threadneedle | 0207 653 9850 |
Caroline Evans-Jones/Robyn McConnachie |
About Pinnacle
Pinnacle Technology Group plc (AIM: PINN) focuses on the business market across the UK. Driven by leveraging organic opportunities as well as through targeted acquisitions. We provide a wide range of converged managed solutions including Managed Support Services, Unified Communications and Collaboration, Communications and Mobility, Software as a Service (SaaS) and Infrastructure services.
Pinnacle is a fully licensed Public Telephone Operator, has its own telephone network and interconnects with BT, Cable and Wireless and Virgin Media. It has its own hosted voice (VoIP) platforms and engineers and owns Scotland's oldest ISP and a founder member of Nominet, operating from its data centres in Glasgow, London and Brighton.