Corero Network Security raises £5.6m to support sales and marketing

AIM-listed Corero Network Security has raised about £5.6m from an equity placing to support sales and marketing activities.

The security company raised the £5.6m from a placing and subscription of up to 112m new shares at 5p each, a 5% discount on the closing mid-market price on Wednesday.

The shares are subject to shareholder approval at the next general meeting and if approved, are expected to be admitted to trade on AIM on 25 April.

Due to the level of demand from existing shareholders, Chairman Jens Montanana agreed to reduce the amount he initially said he would subscribe for and so he subscribed for about £3.4m worth of shares, increasing his stake in the company to about 44%.

The proceeds will be used to support sales and marketing activities in the US and Europe for its SmartWall threat defense system to mainly telecommunication internet service providers, data centre hosting providers, multiple service operators, mobile phone companies, and online enterprises

It will also be used to fund further development of SmartWall and for the general working capital.

Shares in Corero Network Security were up 9.52% to 5.75p at 0843 BST.