Primorus Investments PLC Fresho Update and Further Investment (8397V)
November 08 2017 - 1:00AM
UK Regulatory
TIDMPRIM
RNS Number : 8397V
Primorus Investments PLC
08 November 2017
Primorus Investments
FRESHO INVESTMENT UPDATE AND SECOND ROUND INVESTMENT AT 40%
UPLIFT TO INITIAL INVESTMENT
Primorus Investments ("Primorus" or the "Company") (PRIM.L) is
pleased to provide the following update on Fresho Pty Ltd
("Fresho"), an investment in line with its investment mandate.
Following a meeting with management in Melbourne, Australia, the
Board is pleased to report that the Company has been able to
participate for A$75,000 in an oversubscribed A$2m placing at
A$0.38 per share representing a 40% premium to the original
investment price of A$0.27 per share in September 2016. Important
points about the capital raise and business update are:
This capital raise by Fresho was only available to existing
shareholders and initially sought only A$1.5m but it was agreed
A$2m would be taken.
The capital raise replaces a previously flagged larger capital
raise in Q1 2018 largely because the management of Fresho believe
the Australian business is expected to reach breakeven on a
cashflow basis earlier than anticipated.
Following the capital raise Fresho will have just under A$4m in
cash available to continue to drive the Australian business,
innovate and expand the product offering, facilitate the newly
launched New Zealand business and the soon to be launched Singapore
business.
Management believe existing contractual users alone should drive
annualized gross order value significantly higher over the next 6
months. With additional user wins and international growth this may
increase even further.
High-profile Australian technology investor/entrepreneur David
Gold has joined the Board as a non executive director.
Following this investment Primorus will own 1,308,479 shares
representing approximately 3.1% of the issued capital in
Fresho.
Alastair Clayton, Executive Director commented: "Once again we
came away from our meeting with management at Fresho hugely
impressed with the progress and grateful to be able to participate
pro rata in a second round funding that was only available to
existing shareholders. We believe the very attractive pricing of
the issue was very much as a reward and a thank you to existing
shareholders. We believe that, should the Fresho platform continue
to deliver the observed and expected growth rates in 2018, the next
investment taken from external investors may be at multiples of the
current A$0.38 issue price."
This investment is a demonstration of the Primorus business
model where early-stage investing is rewarded with increasing
valuation waypoints on the path to a liquidity event via either IPO
or trade sale.
We expect Fresho to receive serious interest from both sector
participants and the wider investment community in 2018 and look
forward to regular updates as the business accelerates further. It
is both telling and very welcome to see the appointment of David
Gold to the Board given his deep understanding of, and success in,
the technology space."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
About Primorus
Primorus aims to be the leading early-stage investor in pre-IPO
and listed companies with a particular focus on natural resources
(primarily energy), consumer services and technology. Through its
listed structure Primorus may provide individual investors a route
to access a range of private and pre-IPO opportunities that are
usually the preserve of family offices, VC and private equity
funders.
For further information, please contact:
Primorus Investments
plc: +44 (0) 20 7440 0640
Alastair Clayton
Nominated Adviser: +44 (0) 20 7213 0880
Cairn Financial Advisers
LLP
James Caithie / Sandy
Jamieson
Broker: +44 (0) 20 3137 1902
Optiva Securities Limited
Christian Dennis / Jeremy
King
This information is provided by RNS
The company news service from the London Stock Exchange
END
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