The AIM-listed firm said it raised the funds through the placing of 591,340 shares and a subscription of 38,460 shares to new and existing institutional shareholders at a price of 260p each, a 6.8% discount to its closing price on Tuesday.
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Crossword said the funds will be used to drive growth in its Rizikon Pro third-party risk management platform, adding that it also intends to use the proceeds to increase sales and marketing resources for product development and support.
“I am delighted with the continued support we have received from our shareholders, and to welcome new shareholders including the Helium Rising Stars Fund in this latest fundraising, and two other new institutional shareholders. Crossword finished the fourth quarter of 2020 with its highest recorded quarterly revenue, putting us in a strong position coming into 2021”, Crossword chief executive Tom Ilube said in a statement.
“In 2021, we are confident of more than doubling the 25% revenue growth rate that we achieved in 2020. The drivers for this include accelerating the roll out of Rizikon Pro, an out-of-the-box version of our supplier assurance platform, launched in July 2020, and already being used by over 100 organisations. Additionally, in 2021 we will be focusing on securing major consulting clients, adding to our cyber security product portfolio, and expanding internationally”, he added.