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Rosslyn Raising £7.3 million at 5.3% Premium to Previous Close

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Rosslyn Data Technologies plc (AIM: RDT), a leading global big data technology company, is pleased to announce a Placing to raise c.£7.3 million (before expenses) through the conditional issue of 146,000,000 Ordinary Shares at 5.0 pence per Ordinary Share. The Placing has been arranged by Cenkos Securities and the Placing Shares will rank, pari passu, in all other respects with the Company's Existing Ordinary Shares.

  • Placing to raise £7.3 million through the conditional issue of 146,000,000 Placing Shares to new and existing institutional and other investors at 5.0 pence per Placing Share
  • The Placing Price equates to a 5.3 per cent. premium to the closing mid-market price of 4.75 pence on 6 May 2020 and a 22.0 per cent. premium to the 20 day volume weighted average share price of 4.1 pence per Ordinary Share for the full 20 trading days prior to the announcement of the proposed Placing
  • Placing Shares represent 43.1 per cent. of the Enlarged Share Capital

The net proceeds of the Placing of £6.8 million will be used by the Company for the following purposes:

  • Increased sales and marketing effort to accelerate growth, including building the pipeline in Supplier Master Data Management (SMDM)
  • Maintain investment into product development
  • Strengthen balance sheet to protect against possible coronavirus impact
  • Potential for small, opportunistic bolt-on acquisitions.

The Company is pleased to maintain that it expects to be EBITDA positive for the full year to 30 April 2020. Some delays in the signing of contracts due to the COVID-19 coronavirus have led to expected revenues of £7.0 million to £7.2 million for the year end. Gross bank debt at the year-end will be £1.3 million, which is to be managed over its remaining two-year term.

The Company will enter the 2021 financial year with anticipated ARR in excess of £6.0 million, which will have grown from £5.4 million at the start of the 2020 financial year, and expects to increase its positive EBITDA result for the year while maintaining similar profit margins.

The Directors believe that the Group remains an exciting business that has demonstrated strong operational progress to date, proving a resilient business and able to provide exceptional value to clients, especially during the current COVID-19 circumstances. With the injection of additional equity to support further growth, the Directors believe the Company can continue to build upon this momentum.


"It is extremely pleasing to see the level of support received from both new and existing investors as part of this heavily oversubscribed fundraising. The level of demand for the Placing reflects confidence in Rosslyn's strategy and future growth. With the Group having reached the EBITDA positive inflection point, and now being properly funded, we are able to accelerate sales to increase EBITDA and operational cashflow in future periods.

During this time of lockdown, the health and safety of our staff and stakeholders is of paramount importance, and it is pleasing to see we have been able to maintain  high levels of client service, whilst implementing the necessary remote working capabilities. I would like to take this opportunity to thank all Rosslyn staff for their exceptional work throughout the year and in particular during this challenging period. We look forward to working together to grow the business."

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