£2.65 million Placing for Pinnacle Technology Group plc
Pinnacle Technology Group plc, (AIM: PINN) the AIM listed provider of cloud based technology solutions has issued 883,333,333 new ordinary shares of 0.1p each to raise £2.65 million before expenses by way of a placing that was oversubscribed. The funds were raised from both existing and new investors.
Objectives of Placing and uses of funds
The net proceeds of the Placing will be used primarily for working capital purposes, to bring forward the implementation of the Company's growth strategy through the hiring of additional sales expertise to capitalise on the cross selling of the enlarged product suite into an already extensive base of around 3,000 customers. This strategy is designed to mitigate customer risk, strengthen customer relationships and ensure continuing high quality and visibility of earnings.
Alan Bonner, Chief Executive said;
"We are delighted, in this difficult economic climate, to have secured the level of support that we have received from existing investors, as well as new institutional investors who have participated in the placing. The placing will transform the Company's balance sheet, and will provide Pinnacle with the necessary funding to advance our cross selling programme allowing us to expand the business further. Support from high quality institutions has demonstrated the strength of the Company, and we look forward with confidence to delivering investor value and share price appreciation"