Eagle Eye, a UK leader in digital consumer engagement to the retail and hospitality industries, is pleased to announce a successful fundraising of £6.0 million (the "Placing") and the proposed admission of its enlarged ordinary share capital ("the Ordinary Shares") to trading on AIM on 16 April 2014 ("Admission").
The Company also announces that the proposed acquisition of 2ergo Limited, the subsidiary of 2ergo Group PLC ("2ergo") that contains substantially all of the business and assets of 2ergo (the "Acquisition"), has been approved today by shareholders of 2ergo at a general meeting.
Eagle Eye has conditionally placed a total of 3,658,536 new Ordinary Shares at a price of 164 pence per Ordinary Share (the "Placing Price") raising approximately £6.0 million before expenses for the Company.
The market capitalisation of Eagle Eye on Admission at the Placing Price will be approximately £33.0 million.
Eagle Eye entered into a conditional agreement in respect of the acquisition of 2ergo
Limited, a major competitor, on 21 March 2013. The consideration for the Acquisition will
be settled by a payment of £2.5 million in cash raised by the Placing, and the issuance of 1,219,512 Ordinary Shares in Eagle Eye (the "Consideration Shares"). The shareholders of
2ergo approved the Acquisition this morning at a general meeting. The Acquisition is conditional on Admission.
The funds raised from the Placing, conducted by Panmure Gordon (UK) Limited ("Panmure Gordon"), will enable the Company to accelerate the growth of the Company, help fund further investment in strategic technology and acquire 2ergo Limited, providing access to new customers and significant IP.
On Admission, Directors of the Company will hold 26.6 per cent. of the Ordinary Shares which will be subject to a 12 month lock-in period. A further 45.8 per cent. of the Ordinary Shares will be subject to a six month lock-in period.
446,312 Ordinary Shares held by existing shareholders (the "Sale Shares") will be sold at the Placing Price pursuant to the Placing for approximately £0.7 million.
Admission to AIM and the commencement of dealings are expected to begin at 8.00 a.m. on 16 April 2014 under the ticker symbol EYE, and the Company will have 20,131,152 Ordinary Shares in issue.
Panmure Gordon is acting as financial adviser, Nominated Adviser and broker to Eagle Eye in connection with the Placing and Admission.
Full details of the Placing and Admission will be included in the admission document, expected to be available on the Company's website from 16 April 2014.
Phill Blundell, Chief Executive Officer of Eagle Eye, commented: ''We are delighted with the investor response to the Placing and shareholder approval of the acquisition of 2ergo Limited. Combined with its admission to AIM, Eagle Eye is ideally placed to meet the accelerating demand for its multi-channel digital solutions, underpinned by its patented technology and global partners.''