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A US-based provider of data centre optimisation software is investing £100,000 in Rubicon Software.
Rubicon, which supplies Accelerator customer relationship management software, has been looking for a way to replenish its cash. Net debt was £48,000 at the end of 2008.
Information Systems Associates Inc is quoted on the US OTC Bulletin Board (OTCBB: IOSA). It generated revenues of $1.23m in 2008 and the reported loss was $588,000. ISA had available cash of $205,000 so this investment will take up a significant proportion of that. At 60c a share, ISA is valued at $9.79m.
The initial investment is £50,000 and will be made after a general meeting on 15 May 2009. The other £50,000 will be invested within 90 days of the meeting.
The investment is at 2p a share. That was more than double the previous closing price of the Rubicon shares. The share price has jumped 2.375p to 3.25p, which values the current share capital at £1.23m.
ISA can receive £1 of share warrants for every £1 of gross revenues it delivers to Rubicon over the next three years. The warrants have a subscription price of 5p a share. ISA can receive up to 5m warrants.
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