4th Nov 2014 09:16
LONDON (Alliance News) - Proxama PLC Tuesday said it will raise gross proceeds of between GBP3.7 million and GBP4.0 million in a share placing to raise funds to support its growth, as it said it may buy Aconite Technology Ltd.
In a statement, the company said it will issue between 147.6 million and 160.0 million new shares at 2.5 pence a share. The share issue will need to be approved by its shareholders.
"These additional funds will enable us to address the considerable opportunities that are emerging within the fast growing mobile commerce, NFC smartphone and contactless payments market," Proxama Chief Executive Neil Garner said in a statement.
Proxama said it could acquire Aconite Technology, which is a provider of EMV transaction processing, chip lifecycle, NFC mobile and PIN management software products. The deal would be paid for using an initial GBP2.06 million of Proxama shares and potentially GBP1.75 million in earn out payments in either cash or shres.
"The possible acquisition of Aconite would provide a complementary fit into our operations and would integrate well into our CardGateway platform to provide a complete end-to-end solution for card issuers to migrate from cards to mobile devices," Garner said.
"We believe putting our two organisations together would create a potential opportunity to accelerate our development across Europe and the USA as well the chance to cross sell to the combined customer base. We are looking forward to working with them to achieve this," the CEO added.
Proxama said the placing funds would partly be used for working capital requirements, which includes covering debt repayment requirements at Aconite and product integration if the Possible Acquisition completes.
The money will also be used to buy proximity marketing hardware to support the first phase of roll-out of the Exterion Bus Media Network and further investment into sales and marketing capability.
Proxama shares were up 1.0% at 2.42 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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