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Friday 23 September 2022

Crossword raises £3.6m to further fund growth

Crossword CybersecurityCrossword Cybersecurity Plc (AIM:CCS) has announced that it has completed an oversubscribed fundraising by Hybridan LLP of approximately £3.6m, through a placing of Crossword ordinary shares of 0.5p, each at a price of 21.7p per share.

The Company intends to apply proceeds from the placing of 16.76m Ordinary Shares from new and existing institutional shareholders to increase sales and marketing resource as well as fund product development, geographical expansion and for general working capital purposes. The placing price represents a 10% discount to the closing bid-price on 22 September 2022.

Under the terms of its investment, Gresham House Asset Management Limited, has agreed to invest £2m and which will hold 18.9% of the Company's issued ordinary share capital, and will have the right to nominate a Non-Executive Director to Crossword's Board, on condition that it holds at least 15% of the company’s shares.

Founded in 2014, Crossword focusses on developing and commercialising academic research-based cyber security projects. Its lead product, Rizikon, is a SaaS based cyber maturity and GDPR readiness platform with over 500 organisations on the books, and adopts a strategy of using memberships body’s such as Chartered Institute of Information Security and techUk to promote and distribute.

Crossword saw 2021 annual revenue grow 43% year on year to £2.3m in FY 2021, whilst losses after tax were flat at £2.3m. The company completed a £1.6m fundraise early in 2021 followed by a £5m raise in July 2021. The board remains confident in growing revenues by circa 75% to £4m in FY 2022 and 50% yoy in FY 2023 taking revenues to £6m.

Posted by: Simon Baxter at 09:02

Tags: funding   cybersecurity  

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