Mobile firm issues share placing to raise £1.3m
AIM listed Mobile Tornado has issued a share placing to raise £1.3m to develop the business in its key markets of South America, Africa and the Middle East.
The Harrogate-based communication firm has issued up to 27m ordinary shares at a price of 5 pence per placing share.
The firm said the placing was instigated after a sustained period of investment in its technology offering. In a market update this morning, Mobile Tornado said: “It now has, what the Directors believe to be, a market leading set of products and services validated by the securing of recent deals with leading major mobile network operators, such as Hot Mobile in Israel.
“The penetration of 4G has been the catalyst for the Company’s recent success. PTT is already an established global market but with the advent of 4G there is no longer the need for expensive bespoke private radio networks previously deployed by users of these services (e.g. emergency services, hospitals, security, transportation and other blue collar enterprises). The market for enterprise instant communication services is in the process of transitioning from analogue to 4G driven by the requirement for more efficient and cheaper communication.”
The firm said it was well positioned to service a transitioning market of tens of millions of users as one of the few independent global players with an enterprise grade platform. Its client list now includes American Movil (South America), France Telecom/Orange (Europe), Telus (North America), Hot Mobile (Middle East), Vodacom and MTN (Africa).
Mobile Tornado said that since the appointment of Avi Tooba as CEO in May 2016, the former Head of R&D at Motorola for Mission Critical Communications, the engineering team has been significantly strengthened, and the credibility of the company in the global market had been significantly enhanced.
The firm added: “In order to capitalise on the increased interest in the PTT market, the Directors intend to raise additional funds for the business through a Placing to a number of existing shareholders and sophisticated private investors.
“The Board of Directors have also shown their commitment to the future by subscribing for 4,000,000 Placing Shares, representing approximately 14.81 per cent of the issue. The net proceeds of the Placing will be used to fund the Company’s existing investment plan, particularly to continue the development of the business in its key markets of South America, Africa and the Middle East, as well as to fund the general working capital requirements of the Company through to anticipated cashflow breakeven.”
Investec Bank is acting as nominated adviser, sole broker and sole bookrunner in connection with the placing.
Chris Schofield and Lucy Holroyd from Schofield Sweeney advised Mobile Tornado on the placing.