|Matica is quadrupling the number of shares|
|Friday, 16 October 2009 00:00|
Matica is more than quadrupling the number of shares it has in issue in order to raise £3.5m to invest in the business.
The seven-for-two rights issue at 10p a share has been pitched at a large discount to the market price and a 90% discount to the flotation price in April 2007. The share price declined 5p to 22.5p, which values the existing share capital at £2.26m. The share price has fallen by two-fifths over the past month but it is still slightly higher than one year ago.
The Italy-based supplier of card printing, embossing and mailing machines will invest the cash in new distributors, sales and support infrastructure, research and development on desktop systems and working capital.
Rival Datacard is stopping field support for its high speed card machines in 2014. That puts Matica in a strong position to supply replacement equipment. Matica will introduce its Quantum series of equipment which addresses the higher end of the market.
There are signs of improvement in trading but these are still tentative. Cost have been cut to offset the decline in revenues.