Mobile Tornado fundraising approved by shareholders
SHAREHOLDERS of Mobile Tornado have given the go ahead to its plans to raise £4m through a share placing to pursue its growth plans.
The Harrogate-based company announced its intention earlier this month to raise £4m before fees and expenses through an underwritten placing of 20 million new ordinary shares with new institutional investors at a price of 20 pence per share, subject to a meeting yesterday.
The company also announced a proposed reorganisation of its capital, under which, in aggregate, £4m of funds payable to majority shareholder InTechnology, which is owned by Yorkshire technology entrepreneur Peter Wilkinson who was behind Freeserve, Sports Internet and Planet Online, will be capitalised into 20,000,000 new ordinary shares at 20 pence per share – the same as the placing price.
A further amount of around £2.7m payable to InTechnology will be capitalised into capital reorganisation preference shares.
Mobile Tornado said it believes the balance sheet restructuring will allow the company to “better pursue its growth opportunities with a strengthened balance sheet, removing capital constraints and helping it in its contract negotiations with potential customers.”
The company provides instant communication software that can be used on mobile phones.
By using Mobile Tornado’s applications, a company can communicate worldwide with one or many employees simultaneously, locate its remote workforce, and be alerted immediately of major issues.
