Subscription to Raise £1.74m
05 June 2015
RapidCloud International plc (AIM:RCI), the computing services, web-hosting and web-solutions provider based in Southeast Asia, announces that it has raised £1.74m (before expenses) by way of a subscription (the “Subscription”) for 3,231,138 new ordinary shares (the “Subscription Shares”) by the Southeast Asian asset management firm, Corston-Smith Asset Management (“Corston-Smith”).
Rationale for the Subscription to Raise £1.74m
During the 12 month period to 31 December 2014, the company made significant progress, both in terms of financial performance and operational capabilities. In particular, the earnings enhancing acquisition of Exxelnet Solutions Singapore, now renamed RapidCloud Singapore, has provided the Company new products and skillsets and accelerated its growth further.
Since the beginning of the new financial year, the Company has continued to invest in sales and marketing functions and recently launched several new software products specifically designed for the enterprise segment, significantly expanding its addressable market.
The Directors of RapidCloud therefore believe the Company will require a strengthened balance sheet with expanded working capital facilities to continue to invest in its people, products and services in order to capture this emerging market opportunity.
Use of Funds
The new funds will therefore be used to:
- Enhance the product suite to enable the Company to expand its addressable market and enter into higher value contracts;
- Continue to invest in the sales and marketing functions, which are already yielding positive results in terms of new business win within the enterprise market segment; and
- Complete select strategic acquisitions, such as the successful acquisition and integration of Exxelnet Singapore, to bring either enhanced skillsets into the Company, expand the product portfolio or rapidly deliver further territorial expansion within the South East Asia region.
Highlights of the Proposed Subscription
The Subscription will raise gross proceeds of approximately GBP1,744,814 through the issue by the Company of 3,231,138 new Ordinary Shares of nil par value at a price of 54 pence per share.
Upon completion of the Subscription, Corston-Smith will have a 14.88% holding in RapidCloud.
The Subscription Shares shall, upon allotment and issue, rank pari passu in all respects with the then existing Ordinary Shares, save and except that the Subscription Shares will not be entitled to any dividends, rights, allotments and/or other distributions, where the entitlement date precedes the date of allotment of the relevant Subscription Shares.
Planned Admission and Total Voting Rights
Application will be made for the Subscription Shares to be admitted to trading and such trading is expected to take effect on 11 June 2015. Following admission the Company will have 21,711,221 shares in issue which is the same as the total number of voting rights in the Company. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA's Disclosure and Transparency Rules.
Raymond Chee, Managing Director of RapidCloud, said: “We are delighted to welcome Corston-Smith Asset Management as a cornerstone investor. The backing of us by one of Southeast Asia’s prominent fund managers is a significant vote of confidence in our business and strategy. We very much look forward to delivering shareholder value with the backing and support of such a quality investor.”
|RapidCloud International Plc
Raymond Chee, Managing Director
David Cotterell, Chairman
|WH Ireland, Nominated Adviser and Broker
|Tel: +44 (0)20 7220 1666|
|Walbrook, Financial PR and IR
|Tel: 44 (0)20 7933 8792
RapidCloud, one of the few integrated subscription-based computing solutions providers in Malaysia that offers its services through all three currently available segments of cloud computing. The Company is based in Southeast Asia and is one of the few solutions providers in the region to deliver its offerings through all three available Cloud Computing segments, i.e. Software-as-a-Service, Infrastructure-as-a-Service and Platform-as-a-Service.
Formed in 1999 the Company has a well-established cloud offering with a customer base of 37,000. These are predominantly SMEs but also include blue-chip clients such as Deloitte, BAE Systems and Canon, for which RapidCloud’s extensive R&D department creates bespoke software solutions.
RapidCloud currently has operations in Malaysia, Thailand and the Philippines and has plans to expand into Indonesia. According to industry research commissioned by RapidCloud from Frost & Sullivan in 2013, the Cloud Computing industry in Asia Pacific is expected to grow at a CAGR of 49.6% between 2013 and 2015, giving a market size of US45.6 billion by 2015.
RapidCloud International plc was admitted to AIM on 14 August 2013.
For further information, please visit www.rapidcloudasia.com