SME software firm looks to strengthen balance sheet

Leading law firm Irwin Mitchell has advised on a multi-million pound fundraising for AIM-quoted SME software company K3 Business Technology Group plc.

The Manchester-based firm revealed its plans earlier this month for a £7.5m share placing through finnCap with institutional investors and a £1m open offer to shareholders.

The chief executive of K3, Adalsteinn Valdimarsson, said: “This proposed placing and open offer to qualifying shareholders will strengthen the group’s balance sheet and provide additional working capital during this review and enables us to operate with full flexibility as we make strategic decisions.

“The group is undergoing transition but we believe the strategic steps we are taking create a solid platform for future growth.

“We remain encouraged by the underlying strength and performance of K3’s profitable business units which generate significant recurring revenues and cash flows from our large SME customer base.”

Simon Griffiths, Corporate partner at Irwin Mitchell advised finnCap, the corporate broker, on the transaction.

The fundraising was announced on 12 June and is conditional on shareholders’ approval at a general meeting on 4 July.