Crossword Cybersecurity PLC (AIM:CCS) told investors it has issued new loan notes to bring in £275,000 of new funds.
The proceeds are earmarked as working capital as the company focuses on achieving EBITDA and cash breakeven in the second half of 2024, it said in a statement.
It takes the company up to the limit of £2.5 million of additional debt capacity allowed under its shareholder authorisations, set at last July’s AGM.
The notes carry a coupon of 12%, with interest payable quarterly, and they are convertible into equity for 4.5p each (representing the mid-price before the loan notes were issued).
Directors in the company participated in the fundraiser - including chief executive Tom Ilube, chair Sir Richard Dearlove, and non-executive director David Secher, together taking up £65,000 of the notes.
It comes as Crossword’s commercial efforts appear to be gathering momentum.
A week ago, Crossword launched Trillion HarVista, described as a first-of-its-kind tool to allow enterprise security teams to search conversations on the dark web in a clean and sanitised environment.
Prior to that, in February, the company inked a partnership agreement with TD SYNNEX (NYSE: SNX), marking a significant expansion in the distribution of the company’s Trillion platform across Europe.
The team-up seeks to leverage TD SYNNEX's extensive network of small and medium-sized resellers, to boost the availability and support for Crossword's threat intelligence platform.
In December, the company said it was projecting revenues between £4.1 and £4.3 million for its 2023 financial year, which would represent around 15% growth over 2022.