Cloudbuy : Placing to raise £4.3 million

RNS Number : 3493T
Cloudbuy PLC
02 October 2014

cloudBuy plc

("cloudBuy" or the "Company")

Placing to raise £4.3 million

cloudBuy plc (AIM: CBUY), the cloud eCommerce marketplace, is pleased to announce that it has raised £4.3 million (before expenses) by way of a placing by Westhouse Securities of 10,000,000 new ordinary shares of 1p each ("New Ordinary Shares") at a price of 43p per New Ordinary Share (the "Placing Price") with institutional and other investors (the "Placing").  

The Placing Price represents a premium of approximately 13 per cent. to today's closing mid-market price of the Company's ordinary shares of 1p each ("Ordinary Shares").  The New Ordinary Shares will represent approximately 8.3 per cent. of the Company's share capital, as enlarged by the Placing.

The Company intends to use the net proceeds of the Placing to strengthen its balance sheet and for working capital purposes, specifically to invest in platform development and infrastructure and to hire new members of staff. These initiatives are in particular to support and finance the global opportunities being presented to cloudBuy following the signing of the extension to its contract with Visa Worldwide Asia Pacific which was announced on 15 September 2014.

Application has been made to the London Stock Exchange for the 10,000,000 New Ordinary Shares, which will rank pari passu with the existing Ordinary Shares, to be admitted to trading on AIM which is expected to commence at 8.00 a.m. on 7 October 2014.

Ronald Duncan, Chairman of cloudBuy commented:

"Following the recent signing of the extension to our contract with Visa Worldwide Asia Pacific, we are pleased to have concluded this over-subscribed fundraising which has been strongly supported by existing investors. The net proceeds of the placing will strengthen our balance sheet and provide the necessary working capital to enable us to fulfil the opportunities increasingly being presented to us."

Total Voting Rights

Following Admission, the Company will have 119,913,990 Ordinary Shares in issue. This figure may be used by shareholders in the Company 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 share capital of the Company, under the Financial Conduct Authority's Disclosure and Transparency Rules.

A copy of this announcement is available on the Company's website: www.cloudbuy.com.

For further information, please contact:

About cloudBuy plc

cloudBuy, formerly @UK, is a world-leading transactional cloud platform.

cloudBuy has used the platform to build world-leading business to business (B2B) ecommerce and e-procurement applications, which address the full range of buying and selling activities in an easy-to-use web and mobile digital experience.  The platform is also used to build complementary applications such as content management, secure email and big data analysis.

To date, the applications have processed over $500 billion of spend, and are being used by leading organisations around the world to deliver savings, increase profits and improve services.

The applications are unique in delivering correct pricing in the complex world of B2B procurement, whilst being simple enough for anyone to use - to the extent that people with disabilities can easily use a Care marketplace version to buy their own social and health care.

For more information, visit www.cloudbuy.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCUUONRSNARRAA

distributed by