At today’s General Meeting of Defenx plc LON:DFX, which is to take place at midday, Anthony Reeves, Non-Executive Chairman will make the following statement:
“2016 has been a year of solid progress for Defenx as we continue to add channel partners to our network and new products to our suite of security and protection solutions. The process of integrating Memopal Srl, which we acquired in August, into the wider business is going well.
On 7 October 2016, we announced a conditional placing and subscription of, in aggregate, 1,897,500 new ordinary shares of £0.018 each at a price of 80 pence per share, raising gross proceeds of approximately £1.52 million before expenses. The General Meeting today is to approve this fundraise. Our intention is to use the net proceeds of the fundraise to accelerate software development, both to enhance existing products and to develop and test new products, and for general working capital purposes.
A key benefit of our business model is the market intelligence provided by our channel partners. Our software development plans therefore reflect the actual demand in the market for new products and features. As a result of this feedback, we are satisfied that accelerating the Company’s development plans is in the best interest of the Company and Shareholders. Doing so will enable us to bring new products and features to market more quickly than previously envisaged and, in particular, in time for the peak 2017 sales season starting with the back-to-school market next summer, followed by the mobile hardware launch cycle and the run into the Christmas season. We have now started to integrate Defenx’s security products and the Cloud products acquired with Memopal in August 2016.
Work developing our relationships with the new channel partners announced this year continues as does the search for a Head of Sales as we seek to broaden Defenx’s geographical and industry reach. Further announcements will be made as and when appropriate.
Trading in the second half of the year is progressing well and in line with market expectations. We look forward to further growing the business and value for our shareholders.”