Beeks Financial Cloud Group plc (LON:BKS), a cloud computing and connectivity provider for financial markets, today announced the successful completion of the Placing announced yesterday.

The company has raised total gross proceeds of approximately £15 million at a price of 165 pence per Ordinary Share through the aggregate issuance of 9,090,910 New Ordinary Shares, comprising 8,787,879 Placing Shares and 303,031 PrimaryBid Shares. In addition, the Vendor has sold 1,696,970 Sale Shares at the same Issue Price to raise gross sale proceeds of approximately £2.8 million.

The Fundraising was significantly oversubscribed.

Completion of the Fundraising is conditional, inter alia, upon the passing of the Resolutions by Shareholders to authorise the issue of the New Ordinary Shares at the General Meeting expected to be held at 11:00a.m. on 22 April 2022.

Canaccord Genuity acted as nominated adviser and sole bookrunner in connection with the Placing.

Gordon McArthur, Beeks CEO, commented:

“We would like to thank all new and existing investors who have participated in the fundraising for their support. With financial services organisations accelerating their cloud transition strategies, we see a huge opportunity ahead for our Private Cloud, Proximity Cloud and Exchange Cloud offerings, and are focused on the conversion of our record sales pipeline and execution of our product roadmap.”

The New Ordinary Shares represent approximately 16.1% of the Existing Ordinary Shares of the Company, raising gross proceeds of approximately £15 million for the Company. The Issue Price represents a discount of 3.8% to the closing price of 171.5 pence per Ordinary Share on 1 April 2022, being the last practicable date prior to the publication of the Placing Announcement.

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.

Application will be made for the New Ordinary Shares to be admitted to trading on AIM.

Following Admission (and assuming that no other Ordinary Shares are issued following the date of this Announcement), the Company will have a total of 65,406,764 Ordinary Shares in issue, with no Ordinary Shares held in treasury.