2ergo raises £2.2m

MOBILE app firm 2ergo has raised £2.2m through a share placing and will use the funding to help roll-out its contactless payment platforms.

The Salford Quays-based company has raised the funds (before expenses) through the placing of 15 million shares at a price of 10p a share.

Three of the company directors – Neale Graham, Barry Sharples and Keith Seeley – have taken 7 million of those shares, which were priced at a discount of 74% to the closing middle market price of 38.5p a share yesterday (September 13).

The net proceeds, expected to be around £2.1m, will be used for working capital and investment in the roll-out of its podifi and TikTap contactless mobile technology platforms.
 
These mobile platforms form part of its strategy to move away from providing mainstream mobile solutions.
 
Neale Graham, chief executive of 2ergo, said: “We are delighted with the market’s reaction to our contactless mobile technology platform and the support we have received from both existing and new shareholders including directors for our growth strategy.
 
“The proceeds will allow us to accelerate the roll-out of our podifi and TikTap pods in order to capitalise on the opportunities that have already presented themselves in both the enterprise and local commerce sectors.
 
“2ergo has a unique and compelling market proposition and is entering an extremely exciting period in the rapidly expanding mobile business market.”

Addleshaw Goddard’s corporate team in Manchester advised 2ergo on the share placing.

Roger Hart, corporate partner at Addleshaw Goddard, said: “The placing will allow the business to invest in two exciting new technologies, to bring unique mobile technology to market. It’s encouraging to see the level of appetite for investment to support real business growth in this ever-evolving mobile market.”