1 Jun 2012 07:00
1 June 2012
Phorm, Inc. ('Phorm' or 'the Company')
£20m equity fundraising into Phorm China
Phorm (AIM: PHRM and PHRX), the internet personalisation technology company, is pleased to announce that it has entered into agreements to raise £20m via a subscription for a 20% equity stake in an operating subsidiary for Hong Kong and the People's Republic of China ("Phorm China"). The equity subscription gives Phorm China a post-money valuation of £100m.
The equity subscription is subject to the customary closing conditions and a requirement on Phorm to enter into a licensing agreement for its know-how and technology to Phorm China for use in Hong Kong and the People's Republic of China on an exclusive, perpetual, royalty free basis. Closing is expected to occur on or before 31 July 2012. The equity investor is Chinese City Investments Limited ("CCIL"). The proceeds of the equity subscription are to be used for business expansion, capital expenditures, marketing and general working capital for the business of Phorm China and its group companies.
At the end of 2011 it is estimated that China had in excess of 500m internet users, making it the world's largest internet market. The total online advertising market in China was estimated to be $5.97bn in 2011, being the world's third largest market.
Kent Ertugrul, CEO of Phorm, commented, "For a long time we have discussed the potential of specific country level subsidiary financings. This represents the first instance of this and highlights the significant progress we are making at an operating level ahead of commercial launches. We are very confident that this investment will bring with it material support in accelerating our roll out in China."
For Enquiries
Phorm, Inc.
Mark Williams (analysts & investors) +44 20 7297 2326
Alex Laity (media) +44 20 7297 2710
Liberum Capital +44 20 3100 2222
(Nominated Advisor and Joint Broker)
Chris Bowman
Richard Bootle
Mirabaud Securities LLP +44 20 7321 2508
(Joint Broker)
Jason Woollard
Peter Krens
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About Phorm
Phorm is a global personalisation technology company that makes content and advertising more relevant to the consumer. Phorm's innovative platform preserves user privacy and delivers a more interesting online experience.
Phorm's partners include leading Internet Service Providers (ISPs), Publishers, Ad Networks and Advertisers.
A Delaware, US incorporated company, Phorm was admitted to the AIM market of the London Stock Exchange in 2004 and has over 140 employees and contractors.
For more information, please visit: www.phorm.com