25th Sep 2018 16:53
LONDON (Alliance News) - KRM22 PLC on Tuesday said it is planning to raise GBP3.3 million to part-fund its acquisition of risk management technology company Prime Analytics LLC.
KRM22, which invests in risk management technology and software, will pay USD7.5 million for Prime Analytics.
The investor will place 3.3 million shares at 101.00 pence per share in order to satisfy the cash component of this, with finnCap Ltd as nominated adviser and sole broker.
Shares in KRM closed down 17% on Tuesday to 125.00 pence.
Executive chairman and chief executive of KRM22, Keith Todd, has subscribed for 48,000 placing shares, which will bring his holding to 1.6 million shares or a 9.7% stake.
As at June 30, Prime Analytics was generating USD2.6 million in annualised recurring revenue. Its annual 2017 revenue was USD2.5 million and it made a pretax loss of USD300,000.
The maximum consideration for the acquisition is USD7.5 million, with an initial consideration of USD4.5 million, minus any oustanding debt, with USD3.5 million of this to be paid in cash and USD1.0 million through a 773,515 share issue.
A further USD3.0 million deferred consideration will be paid based on Prime Analyics's performance.
Related Shares:
Krm22 Plc