CYBER security software firm Defenx is issuing up to £2m of convertible bonds via peer-to-peer bond auction platform UK Bond Network.
The Aim-listed company separately raised £1.425m in equity through a share placing and subscription on Monday. Defenx said that the combined debt and equity fundraising will be used to respond fully to growing demand for the company’s range of security, backup and protection solutions for smartphones, PCs and networks.
The bond will pay annual interest of between eight per cent and 10 per cent, payable quarterly over a 36-month term. The exact rate will be determined by participating bond investors through an auction process on UK Bond Network’s online platform.
The auction will open in one week’s time and is set to close on Wednesday 30 August 2017. Investors can review the offer documents on UK Bond Network’s platform.
UK Bond Network has already arranged for £1.25m of the bond issue to be underwritten. The bond will be convertible into ordinary shares at the conversion price of 200p – a 25 per cent premium to the equity placing price.
“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,” said Chris Maule, chief executive and founder of 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.”
“This fundraising provides a solid base to support our strategy of continued expansion in both corporate and consumer markets to achieve significant profitable growth,” said Andrea Stecconi, chief executive of Defenx.
“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.”