Beeks Financial to sell new shares in fundraising

Beeks Financial Cloud Group plc, the Glasgow-based cloud computing and connectivity provider for financial markets, announced its intention to conduct a fundraising to raise gross proceeds of £15 million by selling new shares via a placing to new and existing institutional investors.

“In conjunction with the new share placing, a retail offer of new ordinary shares at the issue price will be made by the company via PrimaryBid … to provide retail investors with an opportunity to participate in the equity fundraise …” said Beeks Financial.

“In the event of suitable oversubscriptions, the company has been notified by Gordon McArthur, chief executive officer of the company … that he would sell up to approximately £2.8 million worth of existing ordinary shares … at the issue price …

“Gordon McArthur is currently interested in 26,290,410 ordinary shares, representing approximately 46.7 per cent. of the current issued share capital of the company.”

Beeks said £8 million of the proceeds will be used for “advance purchases of IT rack capacity, computer servers and other associated hardware across the business to manage supply chains for Beeks’ substantial pipeline of deals, including a number of Tier 1 opportunities … plus additional working capital and transaction expenses.”

It said £1 million of the proceeds will be invested in Exchange Cloud, £2 million will be invested into recent contract wins, £2 million will be invested to enhance deployment capabilities for clients, and £2 million will be invested to further accelerate product enhancements and their launches.