Tintra progressing $10m subscription, but slower than hoped

Tintra has received the subscription agreement under the current funding round for $10m, it confirmed on Friday.

The AIM-traded firm said the subscription was agreed with the family office of an unnamed Gulf-based investor, and was being made through a new special purpose vehicle.

It said the subscription had no conditionality, but added that based on earlier funding rounds taking longer to close than expected, the funds due were contracted to be received within 45 days to enable the establishment of the vehicle, at which point the company would update shareholders.

The subscription was for 684,594 new shares at a price of 1,178p each, at an exchange rate of $1.24.

For each two new shares purchased under the subscription, the investor would also receive one warrant to subscribe for new shares at an exercise price of 504p each for a period of five years, conditional on either the market capitalisation of the company topping $500m for three consecutive trading days, or a future funding round being concluded with a post-money valuation of at least $500m.

Tintra said a total of 342,297 warrants would be issued under the subscription, once the funds were received.

“This funding round, in a deteriorating macroeconomic environment, continues to move along well, if a little slower than we would like,” said chief executive officer Richard Shearer.

“We set out on this round with very different market conditions to those which we find ourselves in now, but the continued show of support and interest in Tintra from prospective investors continues to be incredibly motivational.

“Ideally I'd like lots of interest and fast pace, but to continue to have solid interest in our funding strategies with these headwinds is really rewarding internally as confirmation that the mission we collectively set out on is supported so meaningfully.”

Shearer said the company had revised its strategy in recent months to take into account current economic sentiment, and were now speaking to a “wider variety” of funding partners to have a “greater blend” in the funding stack.

“As I've said many times, my only focus is on what the company is doing in three or five years from now, the good it has done for people across the world and the impact that has on the value of our company.

“To that end, we are taking the view that the more cash we can get at bank now the more future proof the build out phase is.

“We have meaningful conversations underway all over the world and after a pause now for the holidays we expect to convert those to commitments.”

At 1625 GMT, shares in Tintra were down 19.23% at 210p.

Reporting by Josh White for Sharecast.com.