Good morning, it's Paul here.

Please see the header for the results & trading updates which caught my eye, on my initial sweep of the RNS first thing.

Estimated completion time - I'm writing mainly this afternoon, so should be finished by about 8pm. Update at 17:19 - I'm exhausted, and need a break. So will finish off later this evening. Actually, I'll put any further updates from now on into tomorrow's placeholder, so that people don't have to keep checking back to see if this report is updated or not. Hence this report for today is now finished.



Cloudcall (LON:CALL)

Share price: 98.5p (down c.7% today, at 12:48)
No. shares: 26.6m existing shares + 12.0m new shares = 38.6m
Market cap: £38.0m

(at the time of writing, I hold a long position in this share)

CloudCall is a software-as-a-service ("SaaS") and unified communications business ("UCaaS"), that has developed and provides a suite of cloud-based software and communications products and services, which enables organisations to leverage data in CRM systems to enable more effective communications.

There are 2 announcements today, interim results, and yet another placing

Fundraising

This is a conditional placing & open offer, at 100p per share. This is a pleasingly small discount to the previous market price, which I am pleased about. Placings are only a problem, if existing shareholders are diluted a lot, at a big discount, which is not the case here.

What is striking is how much larger this £12m placing is, compared with previous fundraisings. The company seems to be significantly scaling up its ambitions, stating;

Funding customer led growth capital opportunities, with ambitions to achieve >£50 million in annualised run-rate revenue by 2025

To put that in context, the annualised run rate of revenues at June 2019, was £11m, so increasing that to over £50m in the next 5-6 years is a big deal, that could trigger a re-rating of the shares, possibly.

To have got away such a (relatively) large placing, in very tough markets, demonstrates that management must have told a very convincing story to institutions & high net worth investors, in the meetings that usually precede placings.

A couple of more general points;

Liquidity - for companies this small, the institutional & private investor markets are almost completely separate, which can create strange anomalies where private investors are…

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