Synchronica plc, (AIM: SYNC), the mobile synchronisation and device management company, said that it had agreed with an institutional investor to issue 30 million shares at 6.25 pence per share to raise £1.875 million. In order for Synchronica to complete the transaction, an EGM will be held for shareholders to vote on the proposal.
The structure of the potential deal is unconventional, with Synchronica also agreeing to enter into an equity swap for 24 months with the investor where any share price appreciation above 8.33 pence would entitle the company to receive more cash in consideration, but at the same time if Synchronica's share price falls in the next 24 months, it will receive less than £1.875 million.
Carsten Brinkschulte, CEO of Synchronica said: "The breakthrough deals we have signed in recent months are a ringing endorsement of our strategy and our products. Synchronica now has a very strong position in the mobile services market, and we are well placed to build on our recent success. With the continued backing of our shareholders we believe can now drive the Company forward and deliver long term value to them."