Crossword Cybersecurity PLC (AIM:CCS) has raised £3.6mln in a placing to invest in sales and marketing, product development and support, and geographical expansion to support its 24/7 monitoring services.
The cyber security and risk management specialist said the fundraising was oversubscribed at a price of 21.7p per share, with existing and new investors subscribing.
This price represented a 10% discount to the closing bid price on Thursday.
Under the terms of its investment, Gresham House Asset Management, which is investing £2mln under the placing to give it an 18.9% stake, will have the right to nominate a non-executive director to the board, on condition that it holds at least 15% of the company's shares.
Crossword, which said some of the new funds would be for general working capital purposes, in July reported results showing revenue doubled in the first half of the year.
It said a growing need for organisations to protect themselves against cyberattacks was behind the growth, with organic revenue up 53% and the top line further boosted by the integration of its fifth acquisition, Threat Status, which was completed in March.