31st Jul 2019 14:29
(Alliance News) - Mobile Tornado Group PLC on Wednesday said it has launched a subscription for shares to raise GBP750,000 to increase its handset stock levels.
The communication services provider said it will issue 15.0 million new shares at a price of 5.0 pence each.
Mobile Tornado shares were untraded on Wednesday in London, last closing at 4.60 pence each, and giving it a market capitalisation of GBP16.8 million.
"The fundraise has been completed at a small premium to the current share price, and I'm grateful to our shareholders for their continued support," said Chair Jeremy Fenn.
Separately, the AIM-listed company said it expects to report revenue for the six months to the end of June of GBP1.5 million, up 18% compared to GBP1.2 million reported a year prior. Mobile Tornado explained that its first-half growth has been driven by solid performance across its three main markets, namely Israel, South Africa and South America.
As a result, Mobile Tornado's loss before interest, taxes, depreciation, amortization and exceptional items is expected to be around GBP300,000, a "significant" improvement on the first half loss of GBP636,000 for 2018.
"I'm pleased to report further trading momentum during the first half and some positive developments in our key trading markets," said Fenn. "To provide us with a little more flexibility when negotiating contracts with new customers, and to facilitate an increase in handset stock levels following an exclusive agreement we have recently signed, we have chosen to raise GBP750,000 of additional working capital."
Related Shares:
Mobile Tornado