Expert System (MI:EXSY) has raised gross proceeds of €10m from the issue of 7.7m shares at €1.30 through a combination of a rights issue and an accelerated book build. The company continues to make good progress in the insurance market where its software can improve the efficiency of business processes, particularly claims management.
Successful rights issue and accelerated book build
In November, Expert announced the launch of a rights issue, giving shareholders the right to acquire two shares for every 15 held at a price of €1.30 per share. This was fully subscribed, raising €4.84m from the issue of 3.719m shares. We note that management participated in the rights issue. In December, the company announced an accelerated book build, which was also fully subscribed. This raised a further €5.16m from the issue of 3.971m shares at €1.30 per share. We have revised our forecasts to reflect the proceeds (we assume net proceeds of €9.7m) and new share count. This results in a new net debt forecast of €4.3m as at the end of FY17, down from our previous €14.0m forecast. This provides Expert with the funds to support the growth of the business, in particular to fund R&D and sales and marketing.
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