3rd Sep 2014 11:27
LONDON (Alliance News) - Tungsten Corp PLC Wednesday said it has been successful in raising GBP12.0 million through the placing of 3.5 million new shares at 340 pence each, money it will use to help fund an acquisition and its organic expansion.
Tungsten turned to the equity markets to raise funds to help pay for its acquisition of Image Integration Systems Inc, known as DocuSphere. It intends to use about GBP5.0 million of the placing towards the USD6.5 million it is paying for DocuSphere, with the remaining GBP7.0 million to be invested in handling its expanded customer commitments.
DocuSphere provides accounts payable automation services, which Tungsten thinks would bring additional strength to its Tungsten Network offering. In the year to end-November 2013, DocuSphere posted a net loss of USD400,000 on revenue of USD3.3 million. In the 12 months to end July 2014, it posted revenue of USD3.7 million.
In a statement, Tungsten said it expects the shares to be admitted to AIM next Tuesday.
"We are very pleased that our shareholder base has strongly supported our placing and acquisition. DocuSphere's technology and very capable team bring Tungsten the ability to accelerate the fulfilment of new opportunities on a global scale while further enhancing the value we deliver to customers," Chief Executive Edmund Truell said in a statement.
Tungsten shares were Wednesday quoted up 3.9% at 358.01p.
By Samuel Agini; [email protected]; @samuelagini
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