Defenx PLC (AIM:DFX), the mobile security software solutions company, announces a conditional placing and subscription of 1,897,500 new ordinary shares of £0.018 each in the Company at a price of 80 pence per share, raising gross proceeds of approximately £1.52 million. The fundraise consists of a placing of, in aggregate, 1,647,500 New Ordinary Shares with certain existing and new institutional and other investors through the Company’s joint brokers, WH Ireland and Beaufort Securities, (the “Placing”) and a subscription of, in aggregate, 250,000 New Ordinary Shares by the Executive Directors.
The net proceeds of the Placing and Subscription, together with existing cash resources, will be used to enable the Company to accelerate software development work (further details on which are set out below) and for general working capital purposes.
The Placing and Subscription are subject to, inter alia, the receipt of Shareholder approval of the necessary resolutions to enable the issue of the New Ordinary Shares. Accordingly, the Company will be sending out a circular to Shareholders (the “Circular”) on Monday 10 October 2016 to convene the necessary General Meeting to seek Shareholders’ approval to update the relevant Board authorities to allot shares in the Company.
The Company intends to convene the requisite General Meeting for 12.00 p.m. on 26 October 2016 at the offices of Taylor Vinters LLP, Tower 42, 33rd Floor, 25 Old Broad Street, London EC2N 1HQ to approve,inter alia, the necessary resolutions in respect of the Placing and Subscription. In the event that the requisite resolutions are not passed, the Placing and Subscription will not proceed, save for the issue of 600,000 New Ordinary Shares at a price of 80 pence per share which will still be issued to certain new investors pursuant to the Company’s existing share authorities, raising gross proceeds of £480,000.
The remainder of this announcement explains, inter alia, the background to and reasons for the Placing and Subscription, and why the Directors consider the Placing and Subscription to be in the best interests of the Company and its Shareholders as a whole and recommend that you vote in favour of the Resolutions to be proposed at the General Meeting, notice of which will be set out at the end of the Circular to be posted to Shareholders.
Andrea Stecconi, CEO of Defenx plc, commented: “We are very pleased by the support shown by both existing and new shareholders in the Placing. These funds will enable us to accelerate the development of our software, both to enhance existing products and to develop and test new products. These products are being developed in response to customer demand and this fund raising will ensure we can bring new products and features to the market quicker than previously envisaged.”
