Crossword Cybersecurity PLC (AIM:CCS) (LON:CCS) raised £5mln through an oversubscribed placing of new shares ahead of the purchase of an unnamed threat intelligence and monitoring services company for up to £1.8mln.
The new shares were sold to investors at 30p each. The cash raised will be also be used to increase sales and marketing activities, product development and support and for general working capital purposes.
The planned acquisition will bring in 30 new clients, primarily in the financial services sector, taking the total number of fee-paying consulting customers to over 100.
“The target company is currently breakeven, with 75% recurring revenue,” investors were told.
“Cross-sell opportunities are being explored with the acquisition, alongside operating synergies.”
Crossword said it would make a further announcement on its plans “in due course”.