Beeks Financial Cloud Group PLC (LON:BKS), a cloud computing and connectivity provider for the financial markets, today unveiled its plans to conduct a fundraising to raise gross proceeds of up to approximately £5 million through a placing to new and existing institutional investors of new ordinary shares of £0.00125 each.

In the event of suitable oversubscriptions, the company has been notified by Gordon McArthur, Chief Executive Officer of the company, that he would sell up to approximately £2 million worth of existing ordinary shares at the placing price.

The placing will be conducted through an accelerated bookbuild. The price at which the Placing Shares are to be placed and the number of New Ordinary Shares and Sale Shares will be determined at the close of the bookbuild.

The proposed New Share Placing is intended to be used to accelerate the Company’s growth strategy and capitalise on the significant market opportunity and solid sales pipeline. Funds will be used to provide additional infrastructure capacity and product development for the Beeks Private Cloud, the repayment of existing debt and for additional working capital, including to assess M&A opportunities.

The net proceeds of the New Share Placing are expected to be utilised as follows:

  • approximately £3m for investment to support the launch of the Beeks Private Cloud offering;
  • approximately £1m for the repayment of the Group’s RCF facility; and
  • up to approximately £1m for additional working capital, including for the evaluation of M&A opportunities.

The New Ordinary Shares, when issued, will be fully paid and will rank pari passu in all respects with the Existing Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid after the date of issue.