GBO.L Regulatory News (GBO)

6 Aug 2009 07:00



Globo plc

£1 million raised to fund initial CitronGO! roll-out

Globo plc ("Globo" or the "Company"; LSE-AIM: GBO), a leader in the Information and Communications Technology market in Greece, announces that it has raised approximately £1 million before expenses via a placing, with UK and Greek investors, of 11,944,029 new ordinary shares of 1 pence each, representing approximately 8.4 per cent of the issued share capital of the Company as enlarged by the placing, at a price of 8.5 pence per share.

The net proceeds from the Placing will contribute to the initial international roll-out of CitronGO! the open 'cloud' mobile communication software solution providing personal and professional users with true ubiquitous computing on a single screen on any mobile phone or laptop - regardless of manufacturer, vendor or network.

Application will be made for the 11,944,029 new ordinary shares to be admitted to AIM and admission is expected to occur on 20 August 2009. Following the placing, Globo's issued share capital will consist of 142,533,559 ordinary shares. 

Costis Papadimitrakopoulos, Managing Director, commented:

"Following the very positive initial reception from the market, we believe CitronGO! will be a significant contributor to Globo's international expansion. We are very pleased with the support we have received from investors in the UK and Greece. This will enable us to accelerate our profitable growth through expansion into the international mobile channel, building on the strong business platform we have established in South Eastern Europe."

Globo's strategy for rolling out CitronGO! focuses on developing strategic partnerships with mobile network operators ("MNOs"), internationally, in order to access their customer bases. Direct discussions are ongoing with several MNOs in different European countries. In addition, marketing and business development partnerships have been established in order to support existing negotiations with MNOs in Latin America, EMEA, Africa, India and China.

As announced on July 21, current trading is strong with revenues for the first half of 2009 expected to have increased by approximately 15 per cent to €8.3 million (first half of 2008: €7.2 million), ahead of the Board's expectations, with anticipated profit before tax marginally ahead of the same period last year. As a result of significantly improved cash collection, net debt at 30 June 2009 reduced by €2.3 million to €7.5 million (€9.8 million at 31 December 2008; €8.4 million at 30 June 2008). 

Globo expects to announce full results for the six months ended 30 June 2009 in September.

St Helen's Capital Plc was broker to the placing.

END

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