LONDON (ShareCast) - Shares in Vianet, a supplier of remote vending machine software, surged almost 40% after it announced a plan to raise £525,000 by issuing 10.5m shares at 5p each.
The placing shares will make up some 4.7% of the enlarged issue share company, Vianet said. The placing will come into effect if they are approved at a shareholder meeting on 9 January.
The additional money will be used to cover continuing operating expenses as the company continues its strategy of growth, Vianet said.
Commenting on the placing, chairman Ian Orrock said: “The directors consider that the placing is in the best interests of the company and shareholders as a whole. The placing will strengthen the company's balance sheet and support the implementation of the board's strategy.”
Broker Brewin Dolphin has irrevocably committed to subscribe as principal for 500,000 placing Shares and the chairman Ian Orrock and non-executive director David Lockwood have irrevocably committed to take up 1,200,000 and 100,000 shares respectively.
