1st Oct 2018 09:28
LONDON (Alliance News) - Shares plunged in Big Sofa Technologies Group PLC as it announced plans to raise GBP1.7 million through a subscription of 56.2 million shares at 3.0 pence per share.
Shares in the video analytics provider were down 57% at 3.02 pence each on Monday.
Novum Securities will unconditionally subscribe for 33.3 million shares, and will be appointed as a joint broker to the company.
Ipsos has subscribed for 11.4 million shares, which is conditional on the resolutions being approved at Big Sofa next general meeting on October 18.
Proceeds will go towards funding the company's working capital requirements, in particular funding investment into research & developments, as well as expanding Big Sofa's sales and marketing activities, especially in the US.
In addition, for the first half of 2018, Big Sofa reported a narrowed pretax loss of GBP1.8 million from GBP2.2 million the year before, due to fall in administrative expenses to GBP2.2 million from GBP2.5 million.
Revenue saw a 20% rise to GBP602,000 from GBP503,000 the prior year, as work commissioned as at June 30 doubled to GBP1.0 million from GBP500,000, the majority coming from the US and companies such as SC Johnson and Target Corp.
"We have made considerable progress in the first half embedding ourselves within global organisations looking for innovative ways to gain insights that influence their product, service or business strategies. The work we have put into productising our offering enables us to take three distinct solutions to market, resulting in a deeper understanding of our capabilities and their capacity to transform client insight strategies," said Chief Executive Officer Simon Lidlington.
"Perhaps most exciting is the launch of Video Observer, a unique solution to analyse in-home and in-store behaviour at scale, which we believe will become an engine of growth for Big Sofa," Lidlington added.
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