News blog

VPhase

• BY: Andrew Hore |
• POSTED: 21/12/2012 |

Voltage optimisation equipment supplier VPhase is taking advantage of some good news to raise a further £500,000 at 0.5p a share.

There was cash in the bank of £1.35m at the end of June 2012 but the business is still loss-making and there is a cash outflow from operations.

Sales are growing but they are still some way away from reaching a point where the business will be profitable. Overseas sales are growing and a deal with Protech Energy Services opens up potential business in France, Belgium, Belgium, Luxemburg and French overseas departments and territories. Minimum sales volumes of £3.8m are anticipated over a three year period. A framework agreement with British Gas provides an opportunity to access the energy supplier’s contract base. The agreement lasts until the end of 2014.

Chief executive Rick Smith has almost doubled his holding in VPhase to 26.7m shares, equivalent to 1.9% of the enlarged share capital, following the placing.

The non-executive directors, Vanda Murray, Colin Black and Duncan Sedgwick, will take their pay in the form of shares for the next 12 months.

House broker Panmure Gordon has been granted a warrant to subscribe for 1% of the company at any point after a period of 12 months has gone by after completion of the placing. The subscription price is the lower of 0.25p a share or the nominal value of the shares at the time.

At 0.62p, up 0.05p, VPhase is currently valued at £8m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFDecember2012_39.pdf