Zamano to raise €2.5m

Mobile content firm Zamano is to raise €2.5 million in a share placing that will help fund the firm's growth plans.

The company said today it had finalised the terms for the placing, which will make 13,888,889 new shares available at a price of 18 cent. Zamano will make applications to have the shares placed on both the London and Dublin markets from December 23rd, at a 5.3 per cent discount to the stock's closing price on the Iseq on December 9th.

The move was first announced in September in Zamano's interim results. The company said it has identified two areas for investment: a dedicated smartphone team to capitalise on the rapidly growing demand for smartphone applications; and the growing mobile advertising market, which is set to grow to €15 billion by 2013.

Zamano will use the proposed fund raising to develop a suite of smartphone applications, fund expansion into new territories and hire development staff, and reduce its gross debt by €1 million.

"The placing will put Zamano in a strong position as we enter 2010, with a strengthened balance sheet and the capacity to execute our strategy in an exciting new market for the group," said chief executive John O'Shea.

The company also reiterated its profit forecasts for the full year to December 31st 2009.