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Ixico proposes £5.5m placing to accelerate commercial strategy
Digital technologies company Ixico has proposed raising £5.5m through a discounted placing with institutions to invest in expansion.
With support from existing and new institutional shareholders, proceeds of the oversubscribed placing of 19.64m shares at 28p each by broker Shore Capital will primarily be used by the AIM-quoted firm to build scale and market presence and commercialise several new products and services.
Ixico reported strong revenues of £2.9m in the first half of its trading, an increase of 26% including forex at actual exchange rate, which, when coupled with a gross margin slightly ahead of the 61% seen last year, the firm expected to result in a reduced EBITDA loss from the £400,000 posted a year earlier.
The proposed placing was conditional on shareholder approval at Ixico's next annual general meeting on 29 May.
Giulio Cerroni, Ixico's chief executive, said, "We are delighted with the investment we have received from new blue-chip institutions and IP Group, an existing shareholder. The oversubscribed Placing has raised £5.5 million and broadened our shareholder base. We welcome shareholders new to IXICO and we also thank our existing shareholders for their continued support, which reflects confidence both in our performance and strategy for future growth.
Ixico will release its interim report card for the six months ended 31 March on 23 May, slightly ahead of its AGM.
As of 0840 BST, Ixico shares had dropped 9.70% to 30.25p.