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Forbidden Technologies raises £3mln in share placing

Last updated: 14:23 01 Dec 2016 GMT, First published: 07:23 01 Dec 2016 GMT

Money, pounds sterling - £20 notes
Cash proceeds will support sales and product development.

Forbidden Technologies plc (LON:FBT) has raised £3mln through a share placing with the proceeds earmarked to boost sales and further product development.

The shares were sold, via Allenby Capital, to institutional and other investors, including existing shareholders.

Some 30mln new shares are being issued, across two tranches, at a placing price of 10p each.

The company says the net proceeds will amount to £2.81mln which will be used to finance further sales, sales support, sales implementation and product development support. It will also support the balance sheet whilst the company establishes profitability and cash generation.

Chief executive Aziz Musa said: “We are building an increasingly strong pipeline of opportunities and the funds raised will help support our sales ambitions.

“This is an exciting time for the company and the board is committed to ensuring growth continues and is optimised as we look to move towards profitability and cash generation."

Separately, the company also revealed that a client, Atos Origin South Africa, is now moving onto to the next stage of its use of Forbidden’s Forscene video editing product.

The customer is using Forscene for training of up to 500 students.

Forbidden said the implementation would see a material amount being added to Forbidden's invoiced sales for the current year. 

Musa said: “Video editing in the cloud is the future.  Our Forscene platform is a leading provider of cloud based video solutions.

“This is a visionary government educational initiative to educate students with future orientated technologies to build video production capabilities in South Africa."

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