Falanx Group Raises GBP4.6 Million To Fund First Base Takeover (ALLISS)

6th Mar 2018 10:16

LONDON (Alliance News) - Falanx Group Ltd said Tuesday it has raised GBP4.6 million after placing 102.2 million shares at a price of 4.5 pence each to pay for the acquisition of First Base Technologies LLP.

Falanx shares were down 7.0% on Tuesday at 4.84p each.

The placing, which was announced earlier Tuesday, represents 65% of its existing issued share capital. The sole bookrunner for the placing was Turner Pope Investments (TPI) Ltd.

Falanx - an intelligence, security, and cyber defence provider - had said earlier on Tuesday it planned to raise to cash to buy First Base for GBP3.2 million as well as for general working capital purposes.

First Base is a cyber security testing and consulting business based in West Sussex. For the 12 months to March, it recorded revenue of GBP1.8 million and earnings before interest, tax, depreciation, and amortisation of GBP600,000.

Falanx Chairman & Chief Executive Mike Read said: "I am delighted to welcome First Base to the Falanx team. They are a strong business, with great people and customers. We look forward to this acquisition creating shareholder value as we start to deliver the synergies which we expect to achieve."

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