28th Jul 2021 13:40
(Alliance News) - Crossword Cybersecurity PLC said on Wednesday it had raised GBP5 million via a share placing.
The risk-focused technology commercialisation company said 16 million new shares were placed at 30 pence each, a 23% discount to its closing price on Tuesday. Shares in Crossword were down 14% at 33.70 pence in London in afternoon trade. The company has a market capitalisation of just under GBP20 million.
Hybridan LLP acted as bookrunner for the London-based firm.
Crossword unveiled the placing results alongside a GBP1.8 million cash-and-shares acquisition of an unnamed threat intelligence company, which is hoped to complete on August 3 subject to contract and placing completion.
The GBP1.8 million buy is set at the unconditional sum of GBP1.35 million and the remaining GBP450,000 is conditional on performance. The firm said the unconditional price represents a revenue multiplier of 2.25.
Crossword said the target company is currently breakeven, and it will look for cross selling opportunities and other operational synergies from the merger. It will make a further announcement once the deal is signed.
The purchase would be Crossword's second acquisition of 2021, after buying Verifiable Credentials Ltd in May.
"Looking ahead and with this latest round of funding and the visibility on our commercial discussions, the board is confident of delivering 60% year-on-year revenue growth in FY 2022 taking revenues to over GBP4 million," said Chief Executive Tom Ilube.
Crossword reported GBP1.6 million in revenue for 2020, up 25% from 2019, narrowing its pretax loss to GBP2.3 million from GBP2.1 million in 2019.
Ilube added that the latest funding offers a "path to profitability" for Crossword.
By Josie O'Brien; [email protected]
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