Mobile Tornado to raise £4m for working capital and platform development
Harrogate-based Mobile Tornado PLC has this morning announced that it is seeking to raise £4m before costs via a share placing at 20p a share, a 2.4% discount to the closing price on Friday. The company is also restructuring its balance sheet by way of converting some debt into new shares.
The company specialises in the provision of Instant Communications services for mobile devices, with a focus on enterprise workforce management. The company's main trading styles are: Instant Talk (Push To Talk); Instant Locate; Instant Alert and Instant Message, incorporating 'presence-based messaging', and 'push to talk and push to video' services.
The company’s headquarters are in Harrogate with additional development centres in India and China.
The company also issued a trading update to the City this morning stating that the “encouraging momentum detailed in the company's final results for the year ended 31 December 2012...has continued in the first half of the current financial year with trading remaining in line with the board's expectations for the full year.”
The statement added that recurring license fee revenues continue to grow with a 27 % increase against last year with a current monthly run rate also markedly ahead of last year.
The company also expects to launch its Instant Communication platforms in South America and Europe during the second half of its current financial year.
As at 30 June 2013, the Company had net debt of £3.6 million.
The net proceeds from the placing, estimated to be circa £3.7m, will be used to provide additional working capital and investment in platform development.