Tadpole attracts 10m equity line of credit
- Added:
- Jan 31, 2002
The company will be able to draw down funds as and when it sees fit over a period of two years. GEM Global will subscribe to new Tadpole shares in lieu of cash at 90% of the average closing price calculated over a 15-dau period, when funds are requested.
Tadpole's hardware business suffered from the malaise in the technology sector in early-2001, but action was taken last June to reallocate expenditure and resources. Consequently, the business is now primed to be cash flow positive throughout the current year, effectively becoming self-funding.
Its software businesses are at different stages but the company said Tadpole-Cartesia can now “realistically anticipate increasing returns” following three years of investment. Additional funds may be channelled into this division, with investment in custom developments and customer service forecast to “take advantage of new opportunities beyond the current plan”.
Tadpole's said its Endeavors business - acquired less than two years ago - has made “major progress in product scope, functionality and maturity” and has a number of potential customers lined up for installations.
The company said it recognises that Endeavors needs to move from a customer evaluation phase to serious, revenue generating business deployments. Analysts recently highlighted Endeavors as a potential leader of the collaborative software market that is set to grow to be worth more than 25bn in 2004.
GEM Group, the parent company of GEM Global, is an active investor in high-tech companies in an otherwise stagnant venture capital market. It has similar equity deals in place with ADVFN.com, Glow Communications, SCI Entertainment, Easyscreen and Rage Software.
Shares are 5% higher at 15.75p, valuing Tadpole at 27.3m.