Fundraise generates £5.6m for big data business
Sheffield-headquartered big data company, Cirata, has completed an equity fundraise, which has resulted in gross proceeds of $7.2m/£5.6m.
It will use this cash to strengthen its balance sheet to take the business through to cash flow break-even, which the firm aspires to as it exits FY24.
Fundraise proceeds will also be used to underpin all stakeholders’ confidence in the company and allow it to capitalise on its potential through investment in sales, marketing and products.
Cirata, which was previously known as WANdisco, notes it has made good progress after the firm had to be rebuilt following last year’s discovery of millions of pounds worth of false purchase orders made by one of its senior sales employees.
A total of 10,103,328 new ordinary shares will be issued by Cirata as part of the fundraise. These offer shares will represent 8.7% of the current issued ordinary share capital of the business prior to the fundraise.
A total of 2,333,103 offer shares have been placed by Panmure Liberum, acting as sole bookrunner at 55 pence per share, raising gross proceeds of about $1.7m/£1.3m.
Concurrently with the placing, 7,522,970 offer shares have been subscribed for by investors directly from the business at the offer price, raising gross proceeds of about $5.3m/£4.1m.
The fundraise includes retail investors who have subscribed in the separate retail offer made by Cirata via the PrimaryBid platform for a total of 194,800 offer shares at the offer price, raising gross proceeds of about $139,000/£107,000.
Cirtata CEO, Stephen Kelly, participated in the placing for a total of 18,181 offer shares at the offer price.
Non-executive chair, Kenneth Lever and senior independent non-executive director, Peter Lees, subscribed directly from the company for a total of 52,455 offer shares at the offer price. Together, the directors’ participation raised gross proceeds of around $50,000/£39,000.
The business adds it remains subject to an ongoing investigation by the Financial Conduct Authority (FCA) into last year’s potentially fraudulent activity.
The FCA is investigating whether certain regulatory announcements released by the company during the period 1 May 2021 to 9 March 2023 may have materially mis-stated the business’s financial position.
Cirata notes: “The FCA investigation is ongoing and it is not yet known whether the FCA will seek to take action against the company.
“If the FCA does ultimately decide to take action, this may result in the FCA sanctioning the company. Such sanction could include the company receiving a fine and may have a material adverse effect on its business, operating results, reputation, financial position or future prospects.
“Due to the nature of the FCA investigation and the stage that it is at, the company cannot provide any more certainty of its outcome at this time.”
