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KRM22 jumps as it raises over £1mln in premium share placing

Published: 08:48 14 May 2020 BST

KRM22 PLC - KRM22 jumps as it raises over £1mln in premium share placing

KRM22 PLC (LON:KRM) saw its shares rise on Thursday as it completed a share placing at a premium, raising around £1.14mln.

The risk management software firm said it had raised the proceeds through the issue of around 3.8mln new shares at a price of 30p each, a 27.7% premium to its closing price last Thursday, the last trading day before Monday when it unveiled that it had exceeded its fundraising target.

READ: KRM22 surges as it exceeds fundraising target

KRM22 also said its executive chairman and chief executive, Keith Todd, chief financial officer Kim Suter and non-executive director Steve Sparke intend to make a further equity investment of around £135,000 in the company through a subscription for 499,998 new shares at the placing price.

The company said the proceeds of the fundraising will be used for general working capital purposes, with the new shares to be admitted to AIM on May 18.

"I am delighted that we have been supported by core and new shareholders to provide the company with additional working capital to support our growth strategy”, Todd said in a statement.

“The placing together with our committed debt facility will strengthen the available liquidity during a time of uncertainty caused by [coronavirus]. We are encouraged by the breadth and depth of engagement with current customers and new prospects in all regions of the world and look forward to updating shareholders on this soon", he added.

In a note, analysts at house broker finnCap said with the extra funds they now expected net debt at the end of the company’s 2020 financial year to be at breakeven compared to previous forecasts of £300,000.

KRM22 shares were 8.2% higher at 29.8p in early deals.

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