Built Cybernetics (AIM:BUC) shares fell 14.21%, to 1.63p, accounting for a new equity raise, via a c.£0.57m placing and subscription to fund Smart Core development, M&A-related costs and general working capital.
The fundraising is being done in two tranches, with First Tranche proceeds of approximately £0.435m raised through the issue of 29m new shares within existing allotment authorities and the balance of approximately £0.135m represented by 9m Second Tranche Shares being conditional on shareholder authority plus up to 6.67m Retail Offer shares.
"The proceeds will strengthen the balance sheet, allow us to focus on the growth of the Group's recurring software revenues and pursue potential acquisitions that we believe will re-rate this business over the medium term," Nick Clark, Chief Executive, said.
Net proceeds will be used in the priority order stated by the company: continued Smart Core development to increase ARR; M&A-related costs for larger transformative acquisitions; and general working capital and balance sheet strengthening.
The issue of the First Tranche Shares is conditional on their admission to trading on AIM, which the Company expects on or around 8 May, and the Second Tranche Shares are conditional on shareholder approval at the AGM on 22 May and on Second Admission expected on or around 25 May.
