Pinnacle Technology Group raises £0.86m through placing

LONDON (ShareCast) - Pinnacle Technology Group, the AIM-listed IT managed service provider, raised £0.86m via a placing of 13,164,122 new ordinary shares. The purpose of the placing was to assist a strategic investment by MXC Capital, to provide funds to be used by Pinnacle Technology (LSE: PINN.L - news) to implement its growth strategy and to fund its working capital requirements.

MXC Capital was also chosen to provide corporate finance advisory services to the business.

The shares were issued at a price of 6.5p per new ordinary share with N+1 Singer acting as nominated advisor and sole broker for the operation. As of 27 April 2015 the issue price represented a 16% premium to the closing middle market price of 5.625p per existing ordinary share. The placing needed to be approved by shareholders at the company's next General Meeting and if the necessary resolutions passed new ordinary shares would be allotted immediately following the general meeting with admission of the new ordinary shares scheduled to take place at 08:00 on 15 May 2015.

A circular would be posted to shareholders later on 28 April, the company said in a statement.