Business
Placing to Raise £3.2m
Placing to Raise £3.2m.
About this update from Bango Plc
[{"type":"text","content":"\n RNS Number : 9585D Bango PLC 11 December 2009 \n \n\n11 December 2009\nEmbargoed until 07:00\n\nBANGO PLC\n(\"Bango\" or the \"Company\")\nPlacing to raise approximately £3.2 million \n\nBango plc (AIM:BGO), the mobile web payments and analytics company, announces that it has conditionally raised £3.2 million gross (approximately £3 million net of expenses) by way of a conditional Placing of 7,488,372 new Ordinary Bango shares at 43 pence per share. The Company intends that the net proceeds of the Placing will be used to accelerate payments to selected content providers ahead of receipt of funds from network operators. The Board believes this service will provide additional percentage margin for Bango, will enable Bango customers to grow their content related businesses faster, and, will encourage the transfer of business to Bango. \n\nBackground to the Placing\n\nBango's technology and relationships have been developed such that they have the ability to enable the processing of significantly higher volumes of transactions than are currently flowing through the Bango platform without increasing operating costs. The Board is focused on increasing transaction volumes to leverage this situation, and the availability of additional capital will facilitate this. Currently the Company has a debt facility with the Royal Bank of Scotland plc which provides the ability to accelerate funds at increased margin on a month by month basis. The Directors believe that the ability to enter into longer term relationships with content providers, underpinned by the availability of the Company's own capital, will be beneficial to the growth of volumes and margins. \n\nApproximately £1m of the proceeds is expected to be used to accelerate funds to identified content providers in the next few months. The balance of the Placing proceeds is expected to be used to accelerate funds to existing or new content provider customers within the next 12 months. \n\nDetails of the Placing\n\nBango is proposing to raise approximately £3 million net of expenses, through the issue of 7,488,372 Placing Shares pursuant to the Placing at 43 pence per Placing Share and, as announced today, it has conditionally placed the Placing Shares at the Placing Price with institutional and other investors. The Placing Price represents a discoun...