29th Mar 2007 07:03
Synchronica PLC29 March 2007 Synchronica plc ("Synchronica" or "the Company") Placing of 43.75 million new ordinary shares to Raise £3.5 million Trading Update Synchronica (AIM: SYNC) is pleased to announce that it has raised £3.5 millionbefore expenses via a placing of 43,750,000 new Ordinary Shares of 1p each (the"Placing") at a price of 8p per share. The funds raised will be used for workingcapital and to accelerate the growth of the Company's core business ofdeveloping and delivering mobile synchronisation and device managementsolutions. Synchronica provides mobile synchronisation and device management products tooperators and manufacturers worldwide. Its Mobile Gateway product offers pushe-mail and synchronisation for the mass market while its Mobile Manager productsprovide mobile device management tools. Mobile Gateway is based entirely on openindustry standards and can deliver Push Email and synchronisation services tomass-market devices without requiring additional client software installation onthe device or behind the corporate firewall. Use of Proceeds The funds raised from the Placing will be used to: • provide working capital; • strengthen the balance sheet to demonstrate financial stability and strength to operators, device manufacturers and OEM partners; • expand Synchronica's sales function to better handle the strong pipeline of potential customers and to secure additional orders; • invest in product development to further improve the Company's competitive position; • increase numbers of support and pre-sales staff to better serve customers and OEM partners; and • continue the successful and cost-effective marketing strategy in order to generate additional prospects. Placement Details The Placing is conditional upon shareholder approval at an Extraordinary GeneralMeeting (the "EGM"), which has already been convened to be held on 12th April2007. Subject to the passing of the relevant resolutions at the EGM, the Companywill apply for the Placing Shares, which will rank pari passu with the existingordinary shares, to be admitted to trading on AIM and expects that admissionwill occur on 16th April 2007. Following the allotment, the total issued sharecapital of the Company will increase to 80,150,081 ordinary shares. Copies of the circular and notice convening the EGM have been despatched toshareholders and are available from the offices of the Company at Mount PleasantHouse, Lonsdale Gardens, Tunbridge Wells, Kent TN1 1NY. Six members of Synchronica's senior management will be participating in theplacing, including three directors of the Company whose dealings are as follows: Director Existing holding Shares acquired Total shares Total % holding CarstenBrinkschulte 19,461 312,500 331,961 0.4% Angus Dent 45,000 312,500 357,500 0.4% John Gunn 835,330 500,000 1,335,330 1.7% Commenting on the Placing, Carsten Brinkschulte, Synchronica's CEO, said: "Weare pleased that so many of our current investors and our management team choseto support this placement. Mobile e-mail is now set to expand into the massmarket and proprietary solutions are mostly limited to high-end devices in thebusiness user segment. "I believe our industry standard products are very much in the right place atthe right time, addressing both the business user as well as the mass market ofconsumers. This funding will enable us to better capitalise on the traction wehave gained in the international marketplace and to further improve ourcompetitive position. I look forward to reporting progress in the near future." Update on Trading As previously announced on 18 January 2007 and 15 March 2007, the Company is inthe progressing an OEM agreement for Synchronica Mobile Gateway with a majorinternational hardware manufacturer. The process is on track and in line withthe previous announcement. In addition, the Company is in discussions withseveral mobile operators, device manufacturers and potential OEM partners, invarying stages, for licensing the Company's products. Given contracts already entered into, such as the software licence to iXi Mobileannounced 31 May last year, and the expected translation of the negotiationsnoted above into a substantial contract, the directors believe that Synchronicawill benefit from a growing and recurring revenue stream. The Company expects toannounce our results for the year ended December 31, 2006 on April 12 and willupdate on developments at that time. Enquiries: Synchronica plcCarsten Brinkschulte, CEO +44 (0) 1892 552 799 +44 (0) 7977 256 406 Angus Dent, CFO +44 (0) 1892 552 760 +44 (0) 7977 256 347 Seymour Pierce LimitedDavid Newton, Director Corporate Finance +44 (0) 20 7107 8000 Corfin CommunicationsBen Hunt, Harry Chathli +44 (0) 20 7929 8989 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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