Imaginatik raises £1.4m in share placing

AIM-listed innovation company Imaginatik has raised £1.4m in a placing of 68.7m share at 2p each, which will be used to invest in sales and marketing, the development of partnership channels and to support further investment in technology.

The placing - carried out by an of an accelerated bookbuild with finnCap acting as a sole bookrunner - represents a discount of 5.9% to the closing price on Thursday.

Imaginatik said a proportion of the net proceeds will be invested in sales and marketing for the company's partnership channels. It has been developing its partnership channels providing the technology platform and consultancy services to both the partner and to the partner's customer base as part of a jointly developed innovation offering. For this, it receives subscription revenues and consulting fees and will also be entitled to receive success-based fees based on the total contract value of the joint offering.

The proceeds will also be used to invest in both new and existing technology. The focus on existing technology will be to: improve reporting; mobile enablement; and user experience. Spend on new product development will be primarily focussed on further enhancing the analytical tools.

"The balance of the net proceeds will provide additional working capital to help reduce the seasonality in the sales pipeline and protect strategic options as the market evolves," Imaginatik said.

At 1500 BST, the shares were down 5.9% to 2p.