23 September 2022 – London, UK Crossword Cybersecurity Plc (AIM:CCS, “Crossword”, the “Company” or the “Group”), the cybersecurity solutions company focused on cyber strategy and risk, is pleased to announce that it has completed an oversubscribed fundraising by Hybridan LLP of approximately £3.6 million (gross) through a placing of Crossword ordinary shares of 0.5p each (“Ordinary Shares”) at a price of 21.7 pence per Ordinary Share.
The Company intends to apply proceeds from the placing of 16,761,407 Ordinary Shares from new and existing institutional shareholders to increase sales and marketing resource, for product development and support, for geographical expansion to support the 24/7 monitoring services and for general working capital purposes. The placing price represents a 10% discount to the closing bid-price on 22 September 2022.
Under the terms of its investment, Gresham House Asset Management Limited, which has agreed to invest £2m under the placing and which will hold 18.9% of the Company’s issued ordinary share capital, will have the right to nominate a Non-Executive Director to Crossword’s Board, on condition that it holds at least 15% of the Company’s shares.
A copy of the Company’s current investor presentation is available on its website, www.crosswordcybersecurity.com
Settlement and dealings
Application has been made for the admission of the 16,761,407 Ordinary Shares, which rank pari passu with the Company's existing issued Ordinary Shares, to trading on AIM. Dealings on AIM are expected to commence at 8:00am on or around 26 September 2022 ("Admission").
Total Voting Rights
For the purposes of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules ("DTRs"), following Admission, Crossword will have 92,403,715 Ordinary Shares in issue with voting rights attached. Crossword holds no shares in treasury. This figure of 92,403,715 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the DTRs.
Tom Ilube, CEO of Crossword, commented:
“I am delighted with the continued support we have received from our shareholders, and to welcome new shareholders in this latest fundraising. In 2022, we remain confident in growing our revenues by circa 75% to £4m. Looking ahead and with this latest round of funding and the visibility on our commercial discussions, the Board is confident of delivering 50% YOY revenue growth in FY 2023 taking revenues to £6m.”
- Ends -
The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Crossword Cybersecurity plc – Tel: +44 (0) 333 090 2587
Tom Ilube, Chief Executive Officer
Mary Dowd, Chief Financial Officer
Grant Thornton (Nominated Adviser) – Tel: +44 (0) 20 7383 5100
Colin Aaronson / Jamie Barklem / Daphne Zhang / Ciara Donnelly
Hybridan LLP (Broker) – Tel: +44 (0)203 764 2341
Claire Louise Noyce
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About Crossword Cybersecurity plc
Crossword offers a range of cyber security solutions to help companies understand and reduce cyber security risk. We do this through a combination of people and technology, in the form of SaaS and software products, consulting, and managed services. Crossword’s areas of emphasis are cyber security strategy and risk, supply chain cyber, threat detection and response, and digital identity and the aim is to build up a portfolio of cyber security products and services with recurring revenue models in these four areas. We work closely with UK universities and our products and services are often powered by academic research-driven insights. In the area of cybersecurity strategyand risk our consulting services include cyber maturity assessments, industry certifications, and virtual chief information security officer (vCISO) managed services.
Crossword’s end-to-end supply chain cyber standard operating model (SCC SOM) is supported by our best-selling SaaS platform, Rizikon Assurance, along with cost-effective cyber audits, security testing services and complete managed services for supply chain cyber risk management. Threat detection and response services include our Nightingale AI-based network monitoring, Nixer to protect against application layer DDoS attacks, our Trillion and Arc breached credentials tracking platforms, and incident response. Crossword’s work in digital identity is based on the World Wide Web Consortium W3C verifiable credentials standard and our current solution, Identiproof, enables secure digital verification of individuals to prevent fraud.
Crossword serves medium and large clients including FTSE 100, FTSE 250 and S&P listed companies in various sectors, such as defence, insurance, investment and retail banks, private equity, education, technology and manufacturing and has offices in the UK, Poland and Oman. Crossword is traded on the AIM market of the London Stock Exchange.
Visit Crossword at https://www.crosswordcybersecurity.com/