MXC Capital secures £13m for 'near-term opportunities'

Technology merchant bank wants to act on opportunities it has identified

Technology merchant bank MXC Capital is looking to imminently act on "opportunities [it has] identified" after securing £13m of capital to invest.

The London-listed firm said in a trading update this morning that it has raised £7m by placing 274,509,820 new ordinary shares at a price of 2.55 pence per share with both existing and new investors. Meanwhile, it has received credit approval to extend its existing bank facility to £6m, giving it a total pot of £13m to splash out on its next investments.

MXC Capital chairman Peter Rigg said the firm has already identified some opportunities and referred to "an exciting pipeline".

"In our interims announced three weeks ago, I expressed confidence in the company's prospects following an encouraging first half of the year," he said. "This financing allows us to execute some of the opportunities we have identified. I look forward to updating shareholders shortly."

MXC was founded by Ian Smith and Tony Weaver 13 years ago and since then the duo has completed more than 80 transactions. MXC currently holds investments in Redcentric, Pinnacle, Sagacity Solutions, Maytech, Jobbio, Eco City Vehicles, Castleton Technology, CORETX and 365Agile.

The company's strategy is based on two aims: to invest in a small number of key investments, and to build a number of "high-potential, highly desirable" smaller investments which are fast growing.