Business
GBP7.5m share placing
GBP7.5m share placing.
About this update from Velocity Composites Plc
[{"type":"text","content":"\n Velti PLC\n25 October 2007\n\n\n\nFOR IMMEDIATE RELEASE 25 October 2007\n\n\n\n Velti plc\n\n\n PLACING OF SHARES\n\nVelti plc ('Velti' or 'the Company'; LSE-AIM: VEL), a leading provider of mobile\nplatforms, applications and services for advertising agencies, media and mobile\noperators, has raised approximately £7.5 million (€10.7 million) before\nexpenses, via a placing of 3,580,000 new ordinary shares of 5 pence each, at a\nprice of 210p per share, to institutional investors in the UK, Europe and North\nAmerica.\n\nSince coming to the AIM market in May 2006 Velti has experienced robust growth.\nFor the six months ended 30 June 2007, revenues increased by 83 per cent to\n€7.41 million (2006: €4.04 million) and profit before tax by 63 per cent to\n€1.16 million (2006: €0.71 million). The key drivers of this positive\nperformance were successful repeat business from major customers and demand from\nnew customers, as well as the extended geographical footprint of the company.\n\nIn July 2007, the Company announced the creation of Ansible, a joint venture\nwith Interpublic Group to enable brands, agencies and content providers to\ndevelop and deploy mobile advertising and marketing solutions on a global scale.\nSince starting operations and with numerous proposals submitted to potential\nclients, the Board is very encouraged by the early response to Ansible,\nconfirming the Board's belief in the substantial future of the business.\n\nVelti anticipates using the proceeds of the placing to accelerate the\ndevelopment of Ansible, grow its business with mobile operators in mobile\nmarketing and advertising, further enhance its products and operating\ninfrastructure, and fund working capital needs stemming from rapid growth.\nAdditional development will be primarily around Velti's market-leading mobile\nmarketing and advertising offering, in the areas of mobile user-generated\ncontent and social networks. Velti will also strengthen its operating\ncapabilities and infrastructure which includes increasing the capacity of its\noperator-grade data centres.\n\nVelti plans to expand its sales force to provide mobile marketing and\nadvertising platforms to operators in Western Europe, North America and Asia, as\nwell as to expand its indirect sales channels through relationships with major\nsystems integrators. Over the next s...