£20m equity fundraising into Phorm China (5533E)
01 June 2012 - 4:00PM
UK Regulatory
TIDMPHRM
RNS Number : 5533E
Phorm Inc
01 June 2012
1 June 2012
Phorm, Inc. ('Phorm' or 'the Company')
GBP20m equity fundraising into Phorm China
Phorm (AIM: PHRM and PHRX), the internet personalisation
technology company, is pleased to announce that it has entered into
agreements to raise GBP20m via a subscription for a 20% equity
stake in an operating subsidiary for Hong Kong and the People's
Republic of China ("Phorm China"). The equity subscription gives
Phorm China a post-money valuation of GBP100m.
The equity subscription is subject to the customary closing
conditions and a requirement on Phorm to enter into a licensing
agreement for its know-how and technology to Phorm China for use in
Hong Kong and the People's Republic of China on an exclusive,
perpetual, royalty free basis. Closing is expected to occur on or
before 31 July 2012. The equity investor is Chinese City
Investments Limited ("CCIL"). The proceeds of the equity
subscription are to be used for business expansion, capital
expenditures, marketing and general working capital for the
business of Phorm China and its group companies.
At the end of 2011 it is estimated that China had in excess of
500m internet users, making it the world's largest internet market.
The total online advertising market in China was estimated to be
$5.97bn in 2011, being the world's third largest market.
Kent Ertugrul, CEO of Phorm, commented, "For a long time we have
discussed the potential of specific country level subsidiary
financings. This represents the first instance of this and
highlights the significant progress we are making at an operating
level ahead of commercial launches. We are very confident that this
investment will bring with it material support in accelerating our
roll out in China."
For Enquiries
Phorm, Inc.
Mark Williams (analysts & investors) +44 20 7297 2326
Alex Laity (media) +44 20 7297 2710
Liberum Capital +44 20 3100 2222
(Nominated Advisor and Joint Broker)
Chris Bowman
Richard Bootle
Mirabaud Securities LLP +44 20 7321 2508
(Joint Broker)
Jason Woollard
Peter Krens
- ends -
About Phorm
Phorm is a global personalisation technology company that makes
content and advertising more relevant to the consumer. Phorm's
innovative platform preserves user privacy and delivers a more
interesting online experience.
Phorm's partners include leading Internet Service Providers
(ISPs), Publishers, Ad Networks and Advertisers.
A Delaware, US incorporated company, Phorm was admitted to the
AIM market of the London Stock Exchange in 2004 and has over 140
employees and contractors.
For more information, please visit: www.phorm.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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