The AIM-quoted cyber-security software group Defenx is issuing up to £2m of convertible bonds via UK Bond Network.
Defenx has just raised £1.425m in equity through a placing and subscription of new ordinary shares. A company statement said that It’s undertaking the combined debt and equity fundraising so it can respond fully to growing demand for its range of security, backup and protection solutions for smartphones, PCs and networks.
UK Bond Network is an alternative finance provider that specialises in structuring and distributing investment opportunities in secured corporate debt.
The bond will pay a coupon, or annual interest of between 8% and 10%. The precise rate will be determined by participating bond investors through an auction process on UK Bond Network’s online investment platform which is scheduled to close on Wednesday 30 August 2017.
More than half the bond issue, £1.25m, has already been underwritten. The bond will be convertible into ordinary shares at the conversion price of 200 pence, a 25% premium to the equity placing price.
CEO of Defenx Andrea Stecconi said: “The mobile security market is expected to grow to US$5.8bn by 2019. This fundraising provides a solid base to support our strategy of continued expansion in both corporate and consumer markets to achieve significant profitable growth. Working with our advisers we have sought to lessen financial risk by achieving the optimum balance of equity and, through UK Bond Network’s distinctive process, debt.”
CEO and Founder of UK Bond Network Chris Maule said: “Defenx is an exciting company in a growing, increasingly important cyber-security market and is typical of the type of business benefiting from corporate bonds issued via UK Bond Network. Convertible bonds also offer investors the potential to generate additional returns if the Company’s share price performs over the life of the bond.”