KRM22 PLC (LON:KRM) said it plans to raise up to £1.8mln via a share placing and subscription for new stock as it revealed it is in early talks to tap a venture debt provider for up to £10mln to fund potential acquisitions.
If the debt deal is agreed, the company would draw down an initial £1-£2.5mln, investors were told.
“The balance of the facility will become available in tranches conditional on the company's rate of recurring revenues, which would include acquired recurring revenue,” KRM22 added.
The new equity, meanwhile, is being issued at 85p, a 3p discount to last night’s close.
The proceeds will be used to support the continued rollout of the company’s Risk Cockpit, a risk management tool for companies operating in the capital markets.
"The past months have validated the KRM22 business proposition and we are well placed to continue our development and growth supported by this fundraising," said chairman Keith Todd.
On its acquisition plans, which are subject to the company being able to raise the debt tranche, it said it had identified two deals, both in the US risk management arena.
Together they would bring in £1.5mln (US$2mln) of recurring revenues along with 29 additional customers.
The vendors would be given an upfront payment and an earn-out satisfied in cash and shares.