2ergo raises £3.1m in heavily-discounted placing

SALFORD mobile app developer 2ergo has raised £3.1m and shaken up its management team.

The business, which has been trying to line up a funding deal for some time, has placed more than 250 million shares at 1p each – a 70% discount to the closing price of 3.3p on Friday.

London technology investor MXC Capital was described as a cornerstone investor and its founder, Ian Smith, has become the firm’s executive chairman.

Three directors Neale Graham, Barry Sharples and Keith Seeley, have also subscribed to 54 million shares at the same price. The new shares represent 80% of the firm’s enlarged share capital.

Mr Graham is stepping down as chief executive but will continue as a director. Mr Sharples, non-executive chairman Keith Seeley, and Peter Kenyon, who joined in February as a non-executive director, will all resign. The company said it will focus on monetising its existing pipeline of new business.

2ergo’s main product is the Podifi offers service which allows customers on any mobile network to redeem local discounts and promotional offers using their phones. Once the app is downloaded users can redeem offers by tapping the phone over a specially installed ‘podifi pod’, connected to a till.

The Manchester office of law firm Addleshaw Goddard advised on the placing.