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London AIM-listed mobile gaming group Nektan Plc has confirmed that it has secured £2.6 million in working capital, having agreed subscription terms on a new share placement.
Issuing its latest market-filing, Nektan governance reveals that ‘certain investors’ have agreed to back the firm’s subscription agreement, set at 52 million new shares priced at 5p per share.
In its transaction note, Nektan governance details that ‘funds raised will be used to support working capital requirements of the company’s operations’.
October trading saw Nektan governance redraft four ‘placement orders’ having failed to secure interest in the firm’s investment scheme, seeking to raise an original target capital of between £3-5 million.
Seeking to complete its new share placement, Nektan governance details that the transaction will need to be approved by its existing investors voting at a ‘extraordinary general meeting’ scheduled for 18 November.
Underlining the importance of the transaction, Nektan governance details that funds will significantly expand the firm’s B2B commercial pipeline in which the group has ‘17 partners live with a further 15 scheduled to launch before the end of January 2020′.
It said: “The Group continues to be loss making and, the Group requires further funding in order to support the integrations outlined above, which the Directors believe, once fully ramped up, should result in the Group becoming cash flow positive in the second half of its current financial year.”
