Outsoucery has once again been saved from the brink of disaster by telecoms giant Vodafone, with the agreement of a new funding facility.
While specifics of the loan have not yet been revealed, the troubled cloud services provider told the City that the new facility would provide it with ‘sufficient additional funding’ required in order to undertake a realisation of principal assets in the immediate term.
Key partner Vodafone first came to Outsourcery’s rescue last year, with a 48 month, £4m loan at 7.5% p.a. in exchange for a warrant over 3m of Outsourcery’s shares at 30p a share.
This was on top of the £1m cash injection from UKFast and a £1m loan from business holding company Etive.
Outsourcery noted that the existing Vodafone loan would remain in force.
In a trading update on Monday, the company co-founded by former Dragon’s Den judge Piers Linney revealed that it was once again in liquidity crisis, with gross cash standing at just £0.9m. Despite revenues climbing 9% to £8.1m, the news that there was no money left in the bank sent shares crashing to an all time low.
Outsourcery shares surged following the announcement today, up to an intraday high of 7.85 pence. At the time of writing, the AIM listed company is trading at 6.22 pence – a 72% jump on Tuesday’s close.
Audited earnings are expected to be released June 30. Outsourcery has yet to make a profit.