LONDON (Alliance News) - Outsourcery PLC shares were up in early trade on Thursday after the company unveiled plans for a conditional share placement to raise GBP1.5 million and said trading in the period since its last update has been in line with expectations.
The firm will raise GBP1.5 million through the conditional placing of 7,682,500 new shares at 20 pence each. The pricing is a discount to its share price of 22.5 pence at the beginning of trading on Thursday.
Shares in the firm were up 8.7% to 24.45 pence in early trade, putting it among the biggest risers on the AIM All-Share index.
The GBP1.5 million fundraising is part of an overall GBP4.5 million working capital facility for the firm. That package also includes GBP1.0 million in reduced costs, GBP0.5 million through salary sacrifice by the firm's co-chief executives, and an agreement with its current debt providers to reschedule its debt servicing to generate free cash flow of GBP1.5 million.
In addition, the firm said trading has been in line with its expectations since its last update in June. For the six months to June 30, the firm said it made an after-tax loss of GBP3.6 million on revenues of GBP3.5 million. In July, it signed its first significant contract with a key partner which is set to produce yearly revenue of GBP840,000 when fully deployed.