Corero Announces Proposed Fund Raising up to £9.0m ($13.0m)
Corero Network Security plc (AIM: CNS), the AIM listed network security company, is pleased to announce a conditional Firm Placing and Subscription.
London, UK – April 21, 2016 – Corero Network Security, a leading provider of First Line of Defense® security solutions against DDoS attacks is to raise £8.0 million before costs through the issue of 36,363,637 new Ordinary Shares at the Offer Price of 22 pence per new Ordinary Share. The Company also announces an Open Offer to raise up to an additional £1.0 million through the issue of up to 4,601,040 new Ordinary Shares.
- Significantly oversubscribed Firm Placing and Subscription of 36,363,637 new Ordinary Shares at the Offer Price of 22 pence per Ordinary Share to raise up to £8.0 million
- Strong support shown from both existing shareholders and new institutional investors
- A number of new institutional investors introduced to the Company’s shareholder register
- The Offer price represents a discount of 10.2 per cent. to the Company’s closing mid-market share price on 15 April 2016, a discount of 11.7 per cent. to the Company’s 20 day average closing share price and a discount of 7.5 per cent. to the Company’s average closing share price in the period since 4 January 2016
- The net proceeds will be used to support the marketing and further development of the SmartWall TDS product and for the general working capital requirements of the Group
- Open Offer for an aggregate of 4,601,040 Offer Shares on the basis of 1 new Ordinary Share for every 36 Existing Ordinary Shares, at 22 pence each to raise up to £1.0 million
- Under the Excess Application Facility, Qualifying Shareholders can apply for Excess Shares in excess of their Open Offer Entitlement, up to a maximum of the total number of Offer Shares available under the Open Offer
- The Firm Placing, Subscription and Open Offer are conditional, inter alia, upon Shareholders approving the Special Resolution at a General Meeting. A circular containing a Notice of General Meeting will be sent to Shareholders today
Ashley Stephenson, Corero’s CEO, said: “We have been extremely encouraged by the investor response to the fundraise, which was significantly oversubscribed and also introduces a number of new blue chip institutions to the Company’s shareholder register.
About Corero Network Security
Corero Network Security is the leader in real-time, high-performance DDoS defense solutions. Service providers, hosting providers and online enterprises rely on Corero’s award winning technology to eliminate the DDoS threat to their environment through automatic attack detection and mitigation, coupled with complete network visibility, analytics and reporting. This next-generation technology provides a First Line of Defense® against DDoS attacks in the most complex environments while enabling a more cost effective economic model than previously available. For more information, visit www.corero.com.