Castleton, the software and managed services provider to the public and not for profit sectors, is pleased to announce a heavily oversubscribed placing of new ordinary shares of 0.1 pence each in the capital of the Company (“Ordinary Shares”) at a price of 2.25 pence per Ordinary Share, raising gross proceeds of £2.2 million for the Company.
Highlights
- Heavily oversubscribed Placing with new and existing shareholders
- Proposed Placing of 97,777,776 new Ordinary Shares at a price of 2.25 pence per Ordinary Share raising gross proceeds of £2.2 million to strengthen the Company’s balance sheet following the acquisitions of Brixx and Impact as announced on 1 June 2015
- Proposed conversion of £1.5 million loan facility with MXC Capital into new Ordinary Shares at 2 pence per Ordinary Share
- Proposed conversion of £1 million loan notes issued to vendors of Documotive into new Ordinary Shares at 1.1 pence per Ordinary Share
Ian Smith, CEO of Castleton, commented: “We are delighted by the strong response from both new and existing institutional shareholders to the Placing. The recent acquisitions of Brixx and Impact have completed the initial stage of building our platform and the fundraising provides us with additional capital as we continue to integrate our products and services.
Trading across the Group is encouraging; Documotive has just signed its first five-year SaaS deal with a Yorkshire social housing association as well as an agreement with a Dutch reseller to distribute its solutions in the Netherlands, evidencing the strength of its offering and further adding to the Group’s recurring revenue base.
We look forward to updating the market and our shareholders with further progress over the coming months.”