26th May 2015 14:51
LONDON (Alliance News) - Lombard Risk Management PLC Tuesday said it has raised GBP4.0 million through a placing of 37.2 million new shares at 10.75 pence per share with some directors of the company and institutional investors to allow the company to accelerate expansion opportunities.
Lombard said the proceeds will be used to broaden the territorial reach of the next generation of the company's regulatory reporting products, to generally strengthen the company's products, to supplement working capital, and to strengthen the company's balance sheet, it said.
The placing shares have been placed with a number of new and existing institutional investors. In addition, directors Philip Crawford and Steven Rogers subscribed for 1.8 million and 219,984 shares, respectively. Crawford also exercised options over 2.4 million shares with a total exercise consideration of GBP108,000.
Following the placing, Crawford holds a total of 4.7 million Lombard shares, representing a 1.56% stake whilst Rogers did not hold any shares prior to the placing, giving him a 0.07% stake.
The placing shares represent, in aggregate, around 14.1% of the company's existing share capital and around 12.3% of the enlarged issued share capital following the placing.
Lombard said last week it had a cash balance of GBP2.2 million at the end of March and was experiencing "encouraging growth, particularly for its collateral management product in the North American market".
"The board continue to focus on the direct sales function and, following some initial success in the past financial year, expects to see this complemented by increased sales traction through our global network of partners," it said in a statement.
Lombard also has identified a number of opportunities through its global partner network which is providing Lombard with exposure to both a broader range of larger clients and opportunities in new territories.
"The board has received strong indications of support to pursue this strategy and accelerate these opportunities from a number of institutional investors. The proceeds of the placing will enable the company to invest further in pursuing these opportunities to drive further growth," it said.
Lombard shares were up 3.00% to 11.33 pence per share late Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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