eg Solutions looking to raise £3.2m through shares placing

STAFFORDSHIRE software company eg Solutions announced this morning that is proposing to raise up to £3.2m through a shares placing.

The Dunston firm – a back office optimisation specialist – is to place up to 4,905,000 new ordinary shares of 1 penny each with certain existing and new investors, including directors of the company, at a price of 65 pence per share.

It said the net proceeds will be deployed to recruit new staff, increase marketing spend, enhance product development and capitalise on market opportunities.

eg said bolstering its balance sheet will enable it to competitively tender for new contracts.

It is expected that admission of the placing shares to trading on AIM will become effective, and dealings in the shares will commence, on 13 January 2015.

In addition the providers of the company’s convertible loan facility arrangement (with an expected total value of £599,425) have agreed to convert it into 1,198,848 new ordinary shares. Following the conversion, the company will have no outstanding debts.

eg has also announced that Elizabeth Gooch has agreed to act as chief executive officer of the company on a permanent, as opposed to acting, basis.
Duncan McIntyre, chairman of the company, said:  “After a year of building up significant positive momentum, the board is delighted to announce that new and existing shareholders have backed the company as it enters the next phase of our strategy. 

“The company has made great progress both financially and operationally, and we now have a record order book including increasing recurring revenues. This fundraising will enable the group to build on its recent successes by investing further and accelerating our growth plans.”