Forbidden Technologies (LON:FBT), the AIM-quoted developer of the market leading Cloud video platform FORscene, has raised £1.6m before expenses, via a share placing with a number of institutional investors priced at 33p per share. The placing is particularly important to Forbidden because it reduces the number of shares held by board members to below 75%. The high level of management ownership was widely believed to have been a deterrent to institutions coming in to Forbidden. Private investors are understood to number somewhere around 2,000.

Company chief executive, Stephen Streater, brought Forbidden to AIM in 2000 at a float price of 4p. At the close yesterday they were trading at 33p, just off a 12 month high of 35p last Friday. In an interview with Stockopedia last week, Streater said the company’s systems development was now getting to the stage when institutional investors would be interested in backing the company. The new cash will also allow Forbidden to pay off all outstanding loans and provide a significant cash reserve.

Commenting today, Streater said: “The company has crossed the threshold for serious institutional investment. We look forward to the future with confidence.”

Unlock the rest of this article with a 14 day trial

Already have an account?
Login here