Eight Capital Partners pours £0.25m into Imaginatik

Technology-focussed investment vehicle Eight Capital Partners announced an investment of £0.25m into Imaginatik on Friday.

The firm said the AIM-listed Imaginatik is a technology company that operates in the “corporate innovation solutions” software sector.

It said it has a “proven innovation programme” with purpose-built idea management software to enable companies to achieve “breakthrough and continuous” innovation at scale.

Imaginatik reportedly worked with leading global enterprises to build and integrate innovation management skills as a core competency.

Customers include ExxonMobil, Altria, TD Bank, Sodexo, Caterpillar, and Cargill.

Eight Capital said it would immediately invest £0.16m in Imaginatik by subscribing for 14,545,455 new ordinary shares at a price of 1.1p per share, representing approximately 29.7% of Imaginatik's share capital as enlarged by the issue, and through the acquisition of £0.09m of convertible loan notes to be issued by Imaginatik.

The notes had a term of three years, and an annual coupon of 7.5%, payable quarterly in arrears.

At the company's election, the notes would be convertible in whole or in part into Imaginatik shares at the lower of 1.1p per share, and a price which is 10% below the average mid-market price of Imaginatik shares on the five days prior to the day of conversion.

Alongside the investment, Eight Capital was also being granted warrants over Imaginatik shares in respect of the Investment.

The company was being granted one warrant for every two shares issued as part of the subscription, and one warrant for every two ordinary shares that would arise on conversion of the convertible loan notes.

Eight Capital said the issue of the warrants was not conditional on conversion of the notes.

As part of the investment, the company said it was granted the right to appoint a director to the board of Imaginatik, subject to customary due diligence being undertaken by Imaginatik’s nominated adviser.

“We are excited by the opportunity to diversify the company's investments into the technology sector,” said Eight Capital Partners chairman Dominic White.

“Imaginatik is a growing innovation solutions software provider with a number of five star global corporate clients.

“It is one of the market leaders in its area and operates from the UK and [the] US, [and] we look forwards to working with its management on future growth.”