BNN Technology raises £25m in placing to invest in new platforms
BNN Technology has successfully completed a placing announced earlier on Thursday, raising gross proceeds of £25m to fund investment in two new platforms and other initiatives in line with its strategy to become a major data-focused internet portal in China.
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A total of 31,250,000 new ordinary shares of par value £0.10 each were conditionally placed at 80p each and the company said the placing was completed with support from existing and new institutional investors.
BNN said it intends to create a student services platform in China encompassing recruitment, financial services and private equity funding.
It also wants to establish a credit rating platform with local partners in a largely unexploited market.
The Chinese technology company also provided an update on its Nasdaq application. As noted in its announcement earlier this month, the group said it is working towards completing the listing in the third quarter, which it appreciates is later than originally intended.
BNN said the board has been focused on refining the internal structure of the company to ensure it can comply with the stricter internal control requirements required by Nasdaq, particularly with respect to ensuring that it can meet its quarterly reporting requirements
In addition, as part of the application process, all material initiatives and contracts must be disclosed in BNN's application documents. As such, it has deliberately delayed the application process to ensure that all current initiatives, including those announced on Thursday, are able to be fully reflected in the application document.
Chief executive Darren Mercer said: "The initiatives announced today are truly transformational to BNN's prospects, not only in terms of the major industry sectors in which we aim to participate, but also in progressing our ambition to build one of the largest database platform providers in the world's second largest economy.
"Both these deals offer potential to create substantial shareholder value through additional revenue generation in both the medium and long term. When fully rolled out, we believe the very high quality of marketing data provided by the two platforms has the potential to deliver hundreds of millions of new users to our existing sales channels, enabling them to maximise returns, while also supporting the group in achieving its core strategic goal of becoming a major internet portal."