Bglobal is raising £2.5m for additional working capital to finance expected increases in demand.
The smart metering company expects legislation to be passed at the beginning of 2009 that will make it compulsory for medium-sized businesses to have smart meters installed. However, the roll-out to small businesses and homes is still on hold. Bglobal had believed that greater progress would have been made by now. That is why it needs to raise more cash.
Bglobal will raise £2.65m before expenses from a placing and subscription at 20p a share. The company had net cash of £670,000 at the end of March 2008. That is £2.1m lower than six months before.
The market price of the shares fell 2p to 23p. Bglobal joined Aim in April 2007 via a placing at 50p a share.
Directors are buying 1.8m new shares - including the conversion of loans.
Bglobal has framework contracts and orders covering more than 140,000 meters. These will be installed over the next three years. Bglobal has installed 34,000 meters up until July 2008 - 15,528 of those were installed in the last financial year.
Revenues grew from £2.81m to £4.5m in the year to March 2008, but a year ago they were expected to be nearer to £14m. Recurring revenues were £551,000. The loss increased from £2.38m to £3.47m.
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