Amteus has raised £750,000 from a placing at 10p a share but it may need more cash in four months time.
The developer of software for the secure transmission of voice and data over the internet has not signed up schools as fast as it had hoped.
This has led to continuing losses and that is why Amteus needs additional cash. The net proceeds of the placing of £725,000 will go towards paying creditors and provide working capital for four months. Management will then know how much more cash Amteus will need to raise.
If cash is not raised then the business may need to be sold.
Media Buzz, a company owned by Amteus executive deputy chairman Jeffrey Morris and his wife, has helped finance a significant proportion of the £500,000 plus invested in the development of the secure communications product imJack Web 2.0. Media Buzz will receive royalties of 10% of the revenues of this product from the education sector. Amteus chairman Michael Abrahams is a director of Media Buzz.
Morris subscribed for £290,000 of shares in the placing and his stake is 44.4%, while Abrahams invested £100,000 and his stake is 1.85%.
The placing price is above the present market price. At 8.5p a share, Amteus is valued at £4.57m prior to the issue of the new shares.
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.