News Column

DDD Starts Raising New Funds For Push Into 2D Image Processing Market

July 31, 2014

Steve McGrath

LONDON (Alliance News) - DDD Group PLC Thursday after it said that it is currently raising up to GBP2.1 million of convertible unsecured loan notes, and will use the proceeds to push into the 2D image processing market.

The company had said back in April that it expected to bolster its current 3D image processing market revenue with new opportunities in 2D markets like depth sensor and video pre-processing services, a move that would reduce its reliance on the 3D market.

At that time it had revealed that it swung to a pretax loss in 2013, hit by lower shipments of its 3D imaging technology in the ailing PC market, although it also expressed confidence that it could return to growth in 2014.

"This additional funding will allow the continued expansion of our technologies into markets beyond 3D. DDD's new sensor software technology is applicable to the sizeable 2D consumer electronic device markets of PCs, tablets and smartphones. We anticipate having the first PC versions of these new technologies available for our prospective customers to evaluate early in the fourth quarter," the company said in its statement Thursday.

The notes being issued have an annual interest rate of 7%. The company has an option to redeem the notes at any time at a 5% premium to the 10 pence nominal conversion price plus interest.

DDD said four of its directors or their affiliates have agreed to subscribe for notes: Christopher Yewdall has agreed to subscribe for GBP20,000, Nicholas Brigstocke for GBP25,000, a Hans Snook affiliate for GBP50,000, and Sanji Arisawa for GBP20,000.

In total, it had received firm commitments from related parties for the issue of GBP535,000 of the notes by Wednesday. Arisawa Manufacturing Co Ltd, which currently has a 20.8% stake in the company's shares, has agreed to buy GBP420,000 of the notes.

DDD shares were down 5.1% at 5.58 pence Thursday morning, having risen over 6% in earlier dealings.

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Source: Alliance News

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