PCI-PAL raising £3.5m to support its US expansion

Payment solutions specialist PCI-PAL announced its intention to conduct a fundraising aimed at raising up to £3.5m on Tuesday, to support its continued US expansion.

The AIM-traded firm said the funds would be raised by placing 6.25 million new shares at a fixed price of 56p each.

It said the funds raised would be allocated towards several key areas, with a significant portion directed towards supporting its continued expansion in the United States, focusing on marketing efforts, product marketing, and enhancing engagement with key partners.

The board said the US represented a crucial market, with notable revenue growth of 38% year-on-year in the region during the first half of the financial year.

Additionally, the proceeds would bolster the company's balance sheet, positioning it for stronger operational performance, while also providing additional working capital.

The financial strengthening aimed to support PCI-PAL's growth initiatives across the Europe, Middle East, and Africa (EMEA) region, including investment in regional marketing initiatives and enhanced partner enablement and management.

It said the decision to pursue the fundraising came on the heels of its interim results for the six months ended 31 December, which the board said showed robust growth.

Key financial indicators, such as revenue and total annual contract value, exhibited significant year-on-year increases.

Additionally, PCI-PAL reported its first period of adjusted EBITDA positive trading in the first half, indicating progress towards profitability at a group level.

The placing, which would be conducted through an accelerated bookbuild process, was expected to issue up to 6.25 million placing shares, representing 9.5% of its current issued share capital.

It said the offering was targeted at institutional investors and was not available to the public.

The company had consulted major institutional shareholders, receiving confirmation that the placing aligned with shareholder interests.

At 1235 GMT, shares in PCI-PAL were up 0.2% at 56.11p.

Reporting by Josh White for Sharecast.com.