CMS WebView, the UK-based provider of software systems for real-time financial data distribution and management, says it has placed 25 million new shares with institutional and other investors at a price of 10 pence per share to raise 2.5 million (before expenses) for the company.
CMS will the proceeds to accelerate the roll-out of its Transactional Data Interface (TDI), which powers the collection, processing and distribution of live prices and news. Following its successful implementation at the London Metal Exchange, TDI has already been adopted by two key futures exchanges in North America, the Chicago Mercantile Exchange and the Chicago Board of Trade. As part of its expansion, CMS is to launch a sales and customer support operation in Chicago, USA.
The company also intends to use some of the proceeds from the funds to achieve increased income in the traditional quote vendor market sector from its wholesale Digital Data Feed (DDF) product.
Earlier this year, the company won the exclusive UK rights to market ProphetX, a market display system for energy and commodity traders, which has already secured 15 corporate customers in the UK. Again, CMS intends to use some of the new funds raised to increase the sales and marketing resources for this product.
“This Proposed Placing is a crucial step in the Company’s development,” says Bob Antell, Chief Executive of CMS. “The proceeds will provide us with additional firepower to execute our ambitious marketing and sales plans that build on successes we have already achieved, notably in the USA and London. Moreover, we are delighted to welcome the new institutional investors to our existing shareholder base. We believe that the mixture of private and institutional shareholders which we will have following the Proposed Placing should give the Company’s shares liquidity at the same time as being a potential source of raising additional funds in due course, if appropriate. Through the Proposed Placing, we will have quickly raised significant new funds for the Company, which, in addition to its existing cash reserves, should enable us to carry out our 2004 marketing objectives and to have the balance sheet strength to take advantage of additional opportunities which may arise. The institutions’ investments are a clear sign of their confidence in the potential of CMS, our staff and the board. The next two years should be very exciting for the Company.”