The AI-driven procurement technology firm said on Tuesday evening that it had raised £1mln through the placing of 100mln new shares at a placing price of 1p each, a 68% discount to Monday's close price of 3.15p.
In addition to the placing, Maistro said a concert party, which included its largest shareholder, had agreed to subscribe for additional shares at the placing price, conditional on Takeover Panel approval.
The company said the additional fundraising from the concert party would total around £1.25mln, adding that it was also aiming to raise £250,000 through an open offer, the details of which would be sent to shareholders shortly.
In total, the three fundraising methods will total around £2.2mln.
Maistro said it would use the proceeds of the fundraising to invest in its software and business development, including the scaling of services provided to existing key enterprise customers, expanding its sales and support capabilities, and increasing automation to enhance the functionality of its software platform.
David Rowe, chairman of Maistro, said: “The company has gained increasing traction from the Enterprise sector and has successfully posted three halves of consecutive revenue growth since January 2017. The Board believes that this trajectory will continue at an accelerated rate.”
“As such, the Board has determined that in order to capitalise on the growth opportunity from existing and new customers and projects in the pipeline the business requires £2m to fund the business through 2019 and beyond,” he added.
--Updates with results of share placing--