Pinnacle Technology completes placing and open offer

Shareholders in Pinnacle Technology were proving their loyalty to the firm on Wednesday, with the company revealing its previously-announced open offer had been significantly oversubscribed.

On 22 January, the AIM-traded provider of converged technology solutions announced it had conditionally raised £4.55m before expenses, through the issue of 108,392,857 new ordinary shares by way of a placing.

It also revealed it was raising up to a further £0.25m through the issue of up to 5,918,256 new ordinary shares, by way of an open offer to qualifying shareholders on the basis of one open offer share for every 10 existing ordinary shares.

The open offer closed for acceptances at 1100GMT on Tuesday, and on Wednesday Pinnacle said the offer was oversubscribed, having received 20,413,207 applications, representing 345% of the shares available.

Excess applications represented 86% of the total acceptances received, the company's board confirmed.

"We are pleased with the support shown by our shareholders through the open offer," said executive chairman Gavin Lyons.

"These additional funds will provide further working capital to support Pinnacle to become the leading provider of 'IT as a service' to the UK SME market," he added.

Pinnacle's board said all valid applications in respect of basic entitlements under the open offer had been met in full, and a scaling back exercised had been undertaken in line with the Excess Application Facility in respect of the excess applications.