Defenx (AIM:DFX), an AIM listed cyber-security group, is issuing up to £2 million of convertible bonds using alternative finance platform UK Bond Network. UK Bond Network announced it had already arranged for £1.25 million to be underwritten. The bond will be convertible into ordinary shares at the conversion price of 200 pence, being a 25% premium to the equity placing price.
UK Bond Network is an alternative platform that allows smaller companies, both private and listed, to avoid the banking fee and raise capital online.
Additionally, Defenx raised £1.425 million in equity through a placing and subscription of new ordinary shares.
Andrea Stecconi, CEO of Defenx, commented on the new share subscription;
“I am delighted with the continued support of our shareholders. These funds will enable us to bring forward future plans with a coordinated investment in our product portfolio, delivery and sales capacity over the next 12 months to accelerate growth in existing and corporate markets and de-risk the Group’s operations. I look forward to reporting on our progress later in the year.”
According to the company, Defenx is undertaking a combined debt and equity fundraising so it can respond fully to growing demand for its range of security, backup and protection solutions for smartphones, PCs and networks.
The bond offer will pay a coupon or annual interest of between 8% and 10%, the precise rate to be determined by participating bond investors through an auction process on UK Bond Network’s online investment platform. Interest payments will be delivered quarterly over a 36-month term. The auction is scheduled to close on Wednesday 30 August 2017.
Chris Maule, CEO and Founder of UK Bond Network, called Defenx an exciting company in the cyber security space. Maule said that convertible bonds offered investors “the potential to generate additional returns if the company’s share price performs over the life of the bond.”
“The mobile security market is expected to grow to US$5.8billion by 2019,” said Stecconi. “This fundraising provides a solid base to support our strategy of continued expansion in both corporate and consumer markets to achieve significant profitable growth. Working with our advisers we have sought to lessen financial risk by achieving the optimum balance of equity and, through UK Bond Network’s distinctive process, debt.”
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