ECSC Group raises £0.5m for post-Covid opportunities

Cybersecurity service provider ECSC Group announced a placing of 909,091 new ordinary shares at a price of 55p each on Friday, to raise £0.5m before expenses.

The AIM-traded firm said the placing was subscribed to by both new and existing investors.

It said it intended to use the net proceeds in a number of ways, including to ensure it was sufficiently well-capitalised to take advantage of longer-term growth opportunities once the Covid-19 coronavirus situation stabilises.

The proceeds would also strengthen its balance sheet amid the uncertainty caused by the pandemic in order to reassure clients.

ECSC said the placing used its existing authority to issue new ordinary shares for cash on a non-preemptive basis.

“Following our well received annual results, and expressions of interest from both existing and new investors, we are pleased to announce this successful placing,” said chief executive officer Ian Mann.

“We particularly welcome the participation of four new shareholders. In addition to enhancing our cash position, this placing also helps us to prepare for post Covid-19 opportunities.

“Current rapid changes in remote working comes with increased cyber security risks and ECSC continues to be ideally placed to help organisations prevent, detect and respond to the resulting incidents.”

At 1135 BST, shares in ECSC Group were down 3.45% at 70p.