Crossword Cybersecurity raises £3.6m for product and sales development

The AIM-traded firm said the funds were raised through the placing of 16,761,407 shares from new and existing institutional shareholders at a price of 21.7p each.

It said it would use the proceeds to increase sales and marketing resources, for product development and support, for geographical expansion to support its 24/7 monitoring services, and for general working capital purposes.

The placing price represented a 10% discount to the closing price on 22 September.

Under the terms of its investment, Gresham House Asset Management, which agreed to invest £2m under the placing and which would hold 18.9% of Crossword’s issued share capital, would have the right to nominate a non-executive director to Crossword's board on the condition that it held at least 15% of its shares.

“I am delighted with the continued support we have received from our shareholders, and to welcome new shareholders in this latest fundraising,” said chief executive officer Tom Ilube.

“In 2022, we remain confident in growing our revenues by circa 75% to £4m.

“Looking ahead and with this latest round of funding and the visibility on our commercial discussions, the board is confident of delivering 50% year-on-year revenue growth in 2023, taking revenues to £6m.”

At 1008 BST, shares in Crossword Cybersecurity were down 4.71% at 24.3p.

Reporting by Josh White at Sharecast.com.