20th Apr 2020 17:24
(Alliance News) - Blue Prism Group PLC on Monday announced the departure of its chief executive officer and a proposed placing to raise around GBP100 million to strengthen its balance sheet in the ongoing pandemic.
Alastair Bathgate will step down as CEO on April 30 with Executive Chair Jason Kingdon taking over Bathgate's responsibilities and becoming chair & CEO. Bathgate will leave the enterprise software company's board but will support the firm "on an advisory basis in the role of founder".
"Whilst, after 18 extremely enjoyable years, I am sad to be stepping out of an executive role, I remain a fervent supporter and major shareholder of Blue Prism and will be cheering from the sidelines, as well as being available to advise and assist where needed," said Bathgate.
Blue Prism is also intending to conduct a placing with new and existing shareholders to raise approximately GP100 million through the issue of 9.1 million shares priced at 1,100 pence each.
"The net proceeds of the placing will provide the company with additional balance sheet strength in case of prolonged disruption during the period of uncertainty relating to the Covid-19 pandemic, support the group's progress to cash flow break-even and enable the company to capitalise on potential near term and future market opportunities," Blue Prism explained.
The placing is not conditional on shareholder approval and the placing shares are to represent around 11% of its existing share capital.
A number of Blue Prism directors are participating in the placing, subscribing for a total of 115,909 placing shares. These include Kingdon, who is subscribing for 90,909 shares, and Bathgate who is subscribing for 18,182 shares.
Kingdon said: "The duration and impact of this pandemic are at this stage unknown, and as a result we are taking a number of considered actions to address our spending while aiming to preserve the core business and reinforce our differentiation, in preparation for the opportunities which will occur both in the short and longer term.
"The capital raised will improve balance sheet resilience and support our path to cash break even. We believe that Blue Prism's market opportunity remains significant and the board and I have the confidence that, with this support, we will be in a strong position to capitalise on this."
Shares in Blue Prism closed 0.1% higher at 1,151.00p in London on Monday.
By Anna Farley; [email protected]
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