Pinnacle Technology Group has received the backing from shareholders for plans to raise half a million through the stock market as it continues to undergo a turnaround plan that involves investment in areas of growth and cost cutting elsewhere.
The Anglo-Scottish comms business indicated earlier this month that it would be looking to raise more capital through the stock market through the issue of more shares and yesterday gained the backing of shareholders for the plans.
The channel player held a general meeting yesterday and will now get its sole broker N+1 Singer to place more ordinary shares with the aim of raising £560,000, through a Placing and Open Offer through the issue of 8,684,147 new Ordinary Shares at a price of 6.5p.
At the start of the month the firm described its trading position as getting close to neutral on a monthly EBTDA basis and under the leadership of CEO Nicholas Scallan the turnaround was gathering pace.
Scallan kicked off an operational review earlier this tear with the aim of returning the business to profitable growth, reduce costs and sharpen the focus around growth areas.
"The identification of further opportunities has meanwhile served to enhance the confidence of the board.These include sales and marketing initiatives, investment in core infrastructure, systems, and cost reductions, while providing general working capital that will act as a buffer for day-to-day purposes," stated the firm.
Some of the investments that the firm has made is around customer service, with a monitoring and management system from N-Able being deployed to replace some legacy systems.
“The backing and investment from our shareholders is very pleasing as Pinnacle continues to simplify its structure, and tighten its focus," said Scallan “These funds will enable the business to invest in growth initiatives whilst delivering an improved customer experience.”