Getech Group PLC (AIM:GTC) jumped 20% after the minerals and oil exploration specialist completed a £1.5 million fundraise at a premium to yesterday’s close.
Shares were issued at 2p each, an 11% premium, and jumped 0.4p to 2.2p today although that is still well below the price in June.
Aim-listed Getech also highlighted a pipeline of approximately £9.6 million in qualified sales prospects split between its Globe platform and software, geoscience data and geoscience services including a deal in the natural hydrogen sector.
Costs have been reduced by approximately £2.0 million a year, it added, while recurring revenue had risen by 9% to £2.9 million.
Around £750,000 of the money will be used to bolster its sales and business development teams to accelerate delivery of the sales pipeline, £500,000 for working capital and £250,000 on R&D.
“Energy security remains a key global concern and the mining sector is investing significant sums in exploring for new resources which underpins Getech's future prospects for the long-term,” said the statement.
In addition to fundraising, Getech is also selling Nicholson House, its headquarters, which is expected to generate a net £500,000 for use in the business while a retail offer can raise up to a further £200,000.