Sepura Fundraising brings 65 Million Pound
Critical communications systems provider Sepura has conditionally raised around GBP 65 million (gross) through a firm placing and placing and open offer of 185.71 million new ordinary shares at 35p per share.
The share placing raises £15m more than Sepura felt it might seek when it announced liquidity issues in April.
Businessweekly writes that the fundraising will ease cashflow and will help underpin Sepura's expansion plans in the United States. The fundraising was clearly nailed before the shock Brexit vote. CEO Gordon Watling said: “The fundraising announced today will significantly strengthen our balance sheet and provide the right capital structure to support our growth strategy.
“We see significant opportunities to build on recent success in the global transport sector such as New York City Transit, as well as grow our business in North America – the world's largest PMR market. We also expect FY17 and beyond to benefit from our recent investment programmes.
“We have revised our business model and our financial focus is firmly now on cash conversion, improving operating margins and increasing our revenue visibility with contracted and recurring business. The board believes that the group is well positioned to exploit key growth markets.”
A general meeting of the company has been convened for July 15 to ratify the fundraising.
