AIM-listed Business Control Solutions (BCS) Group has raised £3 million in a share placing, which it will use to fund product development and the expansion of its New York operations.
BCS provides software and consulting services to financial services firms including Deutsche Bank.
The group was formed by the merger of City software house B2B Systems and consultancy Buttonwood Tree. The firm floated on the UK AIM market via a reverse takeover of Honeysuckle Group in June 2005.
BCS has raised the £3m through a placing of 50 million new shares at six pence each. The price represents a discount of 14.3% to the closing mid-market price of seven pence per on 6th October.
The vendor says the fundraising was motivated by the increased opportunities brought about by forthcoming regulations - such as SOX, Basel II and MiFID. The net proceeds of the placing will be used to fund investment in growth of the company, specifically in product development and in hiring additional sales, marketing and consulting staff.
Commenting on the funding Nigel Walder, CEO of BCS, says: "We are greatly encouraged by the organic growth we have seen in the first half of this year and
the board is keen to leverage the opportunities presented by the significant changes occurring in our industry and to accelerate our performance.
"The fundraising we have announced today is intended to help us to achieve that, through allowing us to invest in product development, sales and marketing and our New York operations."