11th Jun 2019 10:12
LONDON (Alliance News) - mporium Group PLC on Tuesday said it has raised GBP1.5 million through a share subscription from existing investors as it plans a "major" restructuring.
The marketing technology company said it has issued 150 million shares at a price of 1 pence each.
mporium shares were trading 35% lower on Tuesday morning at 0.96p each, giving it a market capitalisation of GBP8.0 million.
Upon completion of the subscription, the company said its investors will receive 150 million warrants exercisable between December 10 this year and December 10, 2021, with a subscription price of 1.5p per warrant.
The company said Robert Keith - who currently owns 67.7 million shares, or 8.0% stake - has conditionally subscribed for 50 million shares. Keith is the founder of Charles Street International Holdings Ltd, which is a "substantial" shareholder in mporium.
mporium said it plans to begin a "major" restructuring with immediate effect that will refocus the business on the performance-led MporiumX division due to underperformance in the Agency division.
Reflecting the new organisational structure, Tom Smith will be promoted to group managing director and will be responsible for execution of the restructured business. Smith has been head of the Biddable Media division at mporium since April 2017.
The move comes amid mporium's view that its gross margin aspirations will take longer to achieve and that, as a consequence, it will not achieve the desired earnings before interest, taxes, depreciation and amortization breakeven within 2019.
mporium said Executive Chair Barry Moat has resigned with immediate effect. The company will appoint a new chair "as soon as practicable", it said.
"The group has decided that it is necessary to narrow the focus of our business and to take the necessary steps to restructure accordingly. We are confident that under Tom's leadership, the restructured business will provide the company with a solid foundation for future growth," said mporium Chief Executive Nelius De Groot.
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