Starcom shares jumped Friday after an announcement in which it said it has raised £450,000 through a share subscription.
The wireless solutions company issued 36 million new ordinary shares at a price of 1.25p per subscription share. Starcom said several new investors have subscribed.
The net proceeds will provide the company with additional working capital and help convert its pipeline of new business opportunities and provide capex for potential new contracts, as announced earlier today.
Starcom shares are up 29.1% at 1.194p.
In a separate announcement, the company said there are strong signals that business is starting to revive, and it has a strong pipeline of potential new business.
“The board of Starcom can report that negotiations for potential new contracts are progressing and the company is in advanced stage discussions for a number of potentially substantial projects concerning the supply of Starcom's various devices for the tracking and monitoring of containers and related items,” said Starcom in its update.
The potential customers are based in South America and the USA, with one considered one of the major companies in the field of tracking and monitoring containers.
If the negotiations turn out to be successful, the company said they could provide significant revenues over the next few years, including SaaS revenues.
However, it cautioned that there can be no certainty of final contracts or the final terms and value if deals are agreed upon.
“Certain potential clients have indicated their desire to reach an agreement with Starcom for its technology and the Board is hopeful to conclude one or more contracts before the end of this year,” they added.
Trading for Starcom in H2 is expected to improve, but a lot depends on the timing of new contracts. It has also been impacted by the global supply chain issues, with some orders delayed.
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