SysGroup has conditionally raised £11m through an oversubscribed share placing and subscription.
The cloud technology, AI and machine learning specialist has raised gross proceeds of £8.9m through the placing of 27m new ordinary shares to institutional and other investors. The Subscription raised a further £2.1m.
It’s also providing all shareholders with the opportunity to subscribe for an aggregate of up to 1,515,151 Retail Offer Shares at the Issue Price, to raise up to approximately £0.5 million.
It’s expected that admission to the Stock Exchange will take place on 26th June, which is when the share dealings will become effective.
“We are pleased with the level of support from our existing shareholders and are delighted to welcome a number of new investors to the register who share our vision for the business in its next stage of growth,” said Heejae Chae, Executive Chairman.
“We trust that the Retail Offer provides smaller shareholders the opportunity to participate also.”
SysGroup has offices in Liverpool, Manchester, Edinburgh, London, Bristol and Newport.
It said the reasons for the placing and subscription were because it intended to become the “partner of choice” for SMEs in their AI and digital transformation.
Around £2m of the fundraise will be used to fund an “internal transformation project” so that it could be a “true AI adopter and innovator.”
Another £2m will be used to meet the contingent earnout payment due in August 2024 – that follows its acquisition of Truststream.
The remainder of the Fundraising proceeds will be used to strengthen its balance sheet and prepare it for growth and mergers and acquisition opportunities.
