Proceeds to be used for working capital, to strengthen balance sheet
By Marisa Wong
Madison, Wis., Oct. 14 - Earthport plc has received commitments from several institutional and other investors to subscribe for 62.5 million ordinary shares, according to a news release.
Earthport sold ordinary shares at 12p per share, raising £7.5 million. The price per share represents an 18.64% discount to the Oct. 13 closing share price of 14.75p.
Schroder Investment Management Ltd. committed to subscribe for £1.65 million ordinary shares. Zafar Karim, director of the Earthport, has subscribed for £50,000 ordinary shares.
The company's last round of fundraising was in February 2010, and it has since focused on expanding its business, according to the release.
Funds from the latest placement will be used to provide growth and working capital and to strengthen the balance sheet to support the company's continued expansion.
"We are very pleased by the confidence of our investors, including several significant institutions, in the progress we have made since the February restructuring. With this funding we will be well positioned, with a solid balance sheet, to continue to accelerate our growth, and the board looks to the future with confidence," said Hank Uberoi, executive director of Earthport, in a news release.
Earthport is a London-based payments utility company.
| Issuer: | Earthport plc
|
| Issue: | Ordinary shares
|
| Amount: | £7.5 million
|
| Shares: | 62.5 million
|
| Price: | 12p
|
| Warrants: | No
|
| Investors: | Schroder Investment Management Ltd., Zafar Karim, institutional and other investors
|
| Announcement date: | Oct. 14
|
| Stock symbol: | London: EPO
|
| Stock price: | 14.75p at close Oct. 13
|
| Market capitalization: | £20.1 million
|
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