19th May 2014 09:07
LONDON (Alliance News) - Legendary Investments PLC Monday said it has raised GBP900,000 before expenses via a placing of 818.2 million new shares at 0.11 pence each with institutional and private investors, funds it said it will use to increase its stake in Virtual Stock Holdings Ltd.
Shares in Legendary Investments dropped 8.9% to 0.123 pence Monday morning.
The UK-based investment company said it will apply the funds to exercise options over shares in Virtual Stock Holdings Ltd, which would increase its stake to 5.6%, from 2.2%.
"Increasing our stake in Virtual Stock is in line with Legendary's continued focus on technology companies that leverage innovation to fundamentally change business models," Executive Chairman Zafar Karim said in a statement.
Virtual Stock is a cloud-based software-as-a-service business aimed retailers.
Legendary said it will also use the funds to take advantage of new suitable investment opportunities as and when they arise and for working capital.
"The company is currently evaluating an increasing number of opportunities, including those in the technology sector," Legendary Investments said in a statement.
Chairman Zafar Karim subscribed for 22.7 million new shares for GBP25,000 at the placing price, which will see Karim hold a total of 55.7 million shares in the company, or a 2.3% stake.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Legendary Investments PLC