The AIM-listed company said it had raised the funds through a placing of 140mln ordinary shares at a price of 0.25p each, a 44% discount to its closing price on Wednesday. Each share has also been issued with one warrant exercisable at 0.5p per share for one year from date of admission of the new shares.
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RMS chief executive Trevor Brown subscribed GBP25,000 for 10mln shares during the placing, taking his stake in the company to 18.7%, while non-executive director Paul Ryan also subscribed GBP25,000 for 10mln shares for a total stake of 8.6% in the company.
“The funds raised will be utilised to promote the continuing growth of GyroMetric and to develop the Cloudveil Intelligence and Security division, which is currently assisting two of the UK’s largest security guarding firms to manage the evolving risks associated with the [coronavirus] pandemic. The significant participation of the board in the fundraise confirms our confidence in the future”, Brown said in a statement.
“Our objective remains to minimise dilution and maximise growth in shareholder value by controlling costs and focusing investment on growing our sales teams whilst we continue to seek further opportunities to enhance shareholder value”, he added.
RMS shares were 30.9% lower at 0.31p in mid-afternoon trading on Thursday.