2ergo Group places 15 million shares as heavily discounted price

2ergo Group, a mobile solutions company, has placed 15m new shares with both new and existing shareholders at a price of 10p each, a significant discount to the share price of 38.5p before the announcement.

In addition, three of the firm's directors, namely Chief Executive and founder Neale Graham, director and founder Barry Sharples and Non-Executive Chairman Keith Seeley, have agreed to subscribe for a collective total of 7.0m shares, also at 10p each.

Shares fell 46.75%, or 18p, following the announcement.

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In total this will raise £2.2m before expenses, which will be used to provide the group with access to additional working capital and the capital resources required to undertake the necessary investment in the roll-out of podifi, its contactless mobile technology aimed at large retailers and enterprises, and TikTap, a local commerce contactless coupon redemption technology.

Neale Graham, Chief Executive of 2ergo, said: "We are delighted with the market's reaction to our contactless mobile technology platform and the support we have received from both existing and new shareholders including directors for our growth strategy.

"The proceeds will allow us to accelerate the roll-out of our podifi and TikTap pods in order to capitalise on the opportunities that have already presented themselves in both the enterprise and local commerce sectors."

NR