Phorm Corporation Limited Subscription & Operational Update (1110M)
January 18 2016 - 2:00AM
UK Regulatory
TIDMPHRM
RNS Number : 1110M
Phorm Corporation Limited
18 January 2016
18 January 2016
Phorm Corporation Limited
("Phorm" or the "Company")
Subscription to raise approximately US$1 million gross
and Operational Update
Phorm (AIM: PHRM), a leading advertising-technology company and
first party data platform provider, is pleased to announce that it
has raised approximately US$1 million before expenses via a
subscription for 44,821,076 new ordinary shares of nil par value
each in the capital of the Company (the "Subscription Shares") at a
price of 1.55 pence per Subscription Share (the
"Subscription").
Phorm intends to use the net proceeds raised from the
Subscription for the group's general working capital purposes. The
Subscription Shares will represent approximately 4.36 per cent. of
the Company's enlarged issued share capital. The Subscription is
conditional upon admission of the Subscription Shares to trading on
AIM ("Admission").
The closing mid-market price of the Company's existing ordinary
shares on 15 January 2016 (being the latest practicable business
day prior to the date of this announcement) was 1.625 pence per
share. Application will be made to the London Stock Exchange plc
for the Subscription Shares to be admitted to trading on AIM. It is
expected that Admission of the Subscription Shares will become
effective and that dealings in the Subscription Shares will
commence on AIM at 8.00 a.m. on 22 January 2016. The Subscription
Shares will be fully paid and will rank pari passu in all respects
with the Company's existing ordinary shares. Following Admission,
the total issued ordinary share capital of the Company will
comprise 1,028,089,892 ordinary shares.
Operational Update
Significant Reduction in Cash Burn Rate
In the Company's Interim Results for the six months to 30 June
2015, announced on 30 September 2015, Phorm stated that its monthly
average cash burn rate was US$2.5 million per month for H1 2015
(representing a 31 per cent. decrease compared to H1 2014) which
was targeted to be reduced to an average monthly cash burn rate of
approximately US$1.3 million per month by December 2015.
Phorm is pleased to announce that, during Q4 2015, the Company
identified and implemented additional significant cost savings,
with a resultant average cash burn rate for H2 2015 of
approximately US$1.5 million per month.
The Board is currently forecasting a further decrease in the
Company's average cash burn rate to between US$0.63 million and
US$0.71 million per month during 2016, with the forecast total cash
requirement for 2016 being between US$7.5 million and US$8.5
million.
The anticipated reduction in the Company's cash burn rate is
expected to be achieved through a combination of increased cash
receipts from revenue growth, gross margin improvement and the
implementation of further cost reductions.
Internet Service Provider ("ISP") Update
Phorm continues to be engaged in detailed discussions with
several ISPs, in both the United States and Europe, which are at
various stages. Recently, there have been noticeably increased
levels of interest from certain ISPs in monetising their data by
deploying such data to support ad serving. From the Company's
discussions with ISPs, the Directors are confident in their belief
that the Company's full service product set is unparalleled in the
industry.
CBAN Business
Phorm's cookie based advertising network (CBAN) offering
continues to ramp-up in the United States, through the Company's
direct sales efforts, and in the United Kingdom via its channel
partner, Insomnis Media.
In the United States marketplace, Phorm continues to expand its
client list of major brands for which it is delivering advertising,
with clients in the insurance, ISP and multiple systems operators,
consumer electronic manufacturing and leisure sectors. The Company
is also seeing traction in consumer packaged goods, and e-commerce
and with large media planning and buying agencies.
Video
The Company has recently started to serve audiences for
performance and video ad networks which, although currently still
at an early stage, the Board believes has the potential to become a
meaningful source of revenue during the 2016 financial year.
-Ends-
For further information please contact:
Phorm Corporation Limited
Timothy Smith (Chief Executive Officer) +44 (0) 20 3397 6001
Mirabaud Securities LLP (Broker) +44 (0) 20 7321 2508
Jason Woollard
Peter Krens
Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409 3494
James Harris Matthew Chandler James Dance
About Phorm:
Phorm is a leading advertising-technology and first party data
platform provider that enables brands and publishers to address
online users with personalised content and advertising. Phorm's
innovative platform delivers a more interesting online experience
for the user and addressable campaign results for marketers. For
more information, please visit: www.phorm.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBRMJTMBTBTFF
(END) Dow Jones Newswires
January 18, 2016 02:00 ET (07:00 GMT)
Phorm Corp (LSE:PHRM)
Historical Stock Chart
From May 2024 to Jun 2024
Phorm Corp (LSE:PHRM)
Historical Stock Chart
From Jun 2023 to Jun 2024