Image Scan has strategic investor in the wings

18th May 2011 16:51

Image Scan rose sharply Wednesday after the 3D and 2D x-ray imaging firm said an investor has approached the company about making a £0.3m strategic investment. That investor is Rise Step International Development, a Hong Kong resident limited liability investment company whose sole director is Lu Qing. The news more than compensated for the announcement of a 16% decrease in its revenues, to £772,000, as well as lower gross margins and a significant reduction in its period-end cash. Image Scan is to issue 15m new ordinary shares to Rise Step at a price of 2p each, well above the mid-market closing price of 1.25p for Image Scan on the day before the announcement.The £300,000 raised through the placing will buttress the company´s working capital so as to allow it to take advantage of the strong rise seen in its orders, with the current order intake standing at £1.8m. Better yet, at least part of said orders have come from new markets in Asia and the Middle East, "combined with significant industrial orders in segments where the company can add value and has a proven track record", according to company chairman, Brian Emslie. The placing is conditional upon the passing of the resolutions at the general meeting of the company to be held on 21 June 2011. The resolutions include another attempt to get the company's chief executive officer, Louise George, reinstated to the board. AB