Pinnacle raises Â£500k to invest in turnaround
Northampton-based Pinnacle Technology Group has conditionally raised £500,000 in a placing as it continues with the turnaround of the business.
The AIM-listed IT managed services provider placed almost 7.5 million shares at 6.5p each.
It is also proposing to let shareholders who have not taken part a chance to participate in the proposed issue of new ordinary shares to raise a further £100,000.
The net proceeds will be used to strengthen Pinnacle's balance sheet and accelerate growth through investment in sales and marketing activities.
N+1 Singer is acting as sole broker for the company in connection with the placing.
In June 2014, Pinnacle posted a loss in its first half and embarked on a review of the business and operations in an attempt to steer the plc back into the black.
Revenue in the six months to 31 March 2014 stood at £4.3m, down from £5.4m in the same period of the previous year.