2nd Oct 2014 16:45
LONDON (Alliance News) - eCommerce company CloudBuy PLC said Thursday that it had agreed the terms of a contract with an undisclosed Hong Kong financial institution worth a minimum of USD550,000, and raised GBP4.3 million in a share placing.
Under the contract it will provide an eCommerce marketplace for desktops, tablets and a mobile application. This marketplace will be populated by the institution's existing merchant community of around 3000 business to business suppliers.
The initial USD550,000 covers implementation and license fees, with additional revenue opportunities for value added services.
"This is the first cloudBuy emarketplace to be signed in Hong Kong and will expand our services across Asia," said Chairman Ronald Duncan in a statement. "In support of this programme, we will open operations in Hong Kong and have already recruited local Chinese personnel, and commenced the translation of our system into simplified and traditional Chinese in order to address the wider Chinese market."
CloudBuy also raised GBP4.3 million in the placing of 10 million new shares at a price of 43 pence per share, which it said was a 13% premium to its closing price. Shares in Cloudbuy closed down 6.3% at 37.00 pence Thursday.
The shares placed will represent around 8.3% of the company's enlarged share capital.
It said it will use the proceeds to strengthen its balance sheet and for working capital; specifically investing in platform development and infrastructure and to hire new staff.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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