Silverbullet raises £4.5m to help drive sales growth

The AIM-traded firm said the funds were raised through a placing and subscription for 2,394,000 new shares at a price of 100p each to raise £2.39m, and the issue of £2.11m of convertible loan notes.

In addition, Silverbullet said it had also granted an option to its broker Oberon Capital to facilitate up to £0.5m of potential additional demand for new shares from qualified shareholders and other qualifying investors on the same terms as the placing for up to 10 days.

The board said the fundraise, including the broker option, remained subject to shareholder approval at a forthcoming general meeting.

“I am delighted to be able to announce today a £4.5m fundraising to provide the company with additional funds to drive the growth in sales of Silverbullet's 4D product, as well as to provide additional general working capital and strengthen the company's balance sheet,” said chief executive officer Ian James.

“We remain confident in the company's prospects and look forward to providing further updates on our operational progress in due course.

“It is envisaged that the broker option provides the option for existing shareholders who were not able to be contacted as part of the fundraise to take advantage of the opportunity to follow their investments in the company on the same terms.”

At 1114 BST, shares in Silver Bullet Data Services Group were down 27.1% at 102.06p.

Reporting by Josh White at Sharecast.com.