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Remote Monitored Systems raises £350,00 in placing to support growth and reduce debt

The survey, inspection and monitoring company said it has issued a total of around 53.8mln new shares at a placing price of 0.65p, a 9.7% discount to its last close price of 0.72p
Money pile
RMS's non-exec chairman and CEO both subscribed for £100,000 worth of shares each in the placing

Remote Monitored Systems PLC (LON:RMS) has raised £350,000 in a share placing to fund growth in its core business areas and to help clear its debt burden.

The survey, inspection and monitoring company said it has issued a total of around 53.8mln new shares at a placing price of 0.65p, a 9.7% discount to its last close price of 0.72p. The shares will be admitted to trading on 17 January.

READ: Remote Monitored Systems subsidiaries report increased sales and revenues over 2018

RMS’s non-executive chairman, Nigel Burton, had subscribed £100,000 for around 15.3mln shares in the placing, which would take his interest in the firm to 6.8%.

Trevor Brown, chief executive of the firm, also subscribed £100,000 for 15.3mln shares which would take his interest to 22.8%.

Brown said the funds would be “utilised to promote the continuing growth of both of our operating businesses”, adding that the participation of the board members was “an eloquent statement about our confidence in the future".

“We expect 2019 to be a period of strong growth for our two operating businesses, Geocurve and Gyrometric, and this Placing provides the resources necessary to fund that growth. Our objective remains to minimise dilution and maximise growth in shareholder value by controlling costs and focusing investment on growing our sales teams whilst we continue to seek further opportunities to enhance shareholder value."

In late-morning trading Friday, RMS shares were down 3.4% at 0.7p.

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