Carclo announces share placing

Carclo, which is based in Ossett in West Yorkshire, said it would place up to three million shares of 5 pence each in the company at a subscription price of 431 pence per share with institutional investors.

The firm said in a statement: “The maximum proceeds raised from the placing will amount to approximately £13.3m before expenses and such proceeds will be used to fund future capital investment in conductive inkjet technology and the development of Carclo Diagnostic Solutions, and to reduce group indebtedness.”

The company believes its technology can transform the $10bn market for mobile phone and tablet computer touch screens. It recently signed a deal with US-based Atmel, the semiconductor manufacturer, to launch XSense – touch screen sensors made from Carclo’s conductive inkjet technology, which lays fine lines of copper to create considerably cheaper and thinner touch screens than those made using the conventional indium tin oxide.

The firm said today that the net proceeds from the placing, if the maximum number of shares is allocated, will amount to approximately £12.8m after expenses, and the placing will represent about 4.98 per cent of the current issued share capital of the company.

Carclo reported group net debt of £18m as at March 31, 2012. It said: “Although this level of gearing reflects a comfortable level of headroom in respect of the company’s total bank facilities, the board believes that this level of indebtedness acts as a constraint on further investment to expand the company’s technology and growth businesses.”