Business
Fresho Update and Further Investment
Fresho Update and Further Investment.
About this update from Primorus Investments Plc
[{"type":"text","content":"\n \nRNS Number : 8397V Primorus Investments PLC 08 November 2017 \n\nPrimorus Investments\nFRESHO INVESTMENT UPDATE AND SECOND ROUND INVESTMENT AT 40% UPLIFT TO INITIAL INVESTMENT\n \n \n \nPrimorus Investments (\"Primorus\" or the \"Company\") (PRIM.L) is pleased to provide the following update on Fresho Pty Ltd (\"Fresho\"), an investment in line with its investment mandate. \n \nFollowing a meeting with management in Melbourne, Australia, the Board is pleased to report that the Company has been able to participate for A$75,000 in an oversubscribed A$2m placing at A$0.38 per share representing a 40% premium to the original investment price of A$0.27 per share in September 2016. Important points about the capital raise and business update are:\n \nThis capital raise by Fresho was only available to existing shareholders and initially sought only A$1.5m but it was agreed A$2m would be taken.\n \nThe capital raise replaces a previously flagged larger capital raise in Q1 2018 largely because the management of Fresho believe the Australian business is expected to reach breakeven on a cashflow basis earlier than anticipated.\n \nFollowing the capital raise Fresho will have just under A$4m in cash available to continue to drive the Australian business, innovate and expand the product offering, facilitate the newly launched New Zealand business and the soon to be launched Singapore business.\n \nManagement believe existing contractual users alone should drive annualized gross order value significantly higher over the next 6 months. With additional user wins and international growth this may increase even further.\n \nHigh-profile Australian technology investor/entrepreneur David Gold has joined the Board as a non executive director.\n \nFollowing this investment Primorus will own 1,308,479 shares representing approximately 3.1% of the issued capital in Fresho. \n \nAlastair Clayton, Executive Director commented: \"Once again we came away from our meeting with management at Fresho hugely impressed with the progress and grateful to be able to participate pro rata in a second round funding that was only available to existing shareholders. We believe the very attractive pricing of the issue was very much as a reward and a thank you to existing shareholders. We believe that, shou...