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UPDATE 2-Pursuit Dynamics sinks on cash call, loss
December 15, 2011 / 7:35 AM / 6 years ago

UPDATE 2-Pursuit Dynamics sinks on cash call, loss

* Discounted rights issue to raise about 9.4 mln stg

* Full-year loss widens to 15.3 mln stg

* CEO Roel Pieper resigns

* Expects to be EBITDA positive before the end of next fiscal

* Shares fall 57 percent to their lowest levels since mid-2009

By Adveith Nair

LONDON, Dec 15 (Reuters) - British technology developer Pursuit Dynamics announced a deeply-discounted cash call to shareholders, a wider annual loss and the departure of its chief executive, sending its shares plunging to a 2-1/2 year low on Thursday.

The firm said it needed the 9.4 million pounds ($14.5 million) it hoped to raise to fund the commercialization of its portfolio, which includes technologies for saving energy and speeding up mixing and heating processes.

The one-for-eight rights issue at 100 pence a share -- a 51 percent discount to Wednesday’s closing price -- comes just eight months after Pursuit Dynamics raised 8 million pounds through a placing in April.

“The generation of revenue and cash from commercialisation of PDX’s (Pursuit Dynamics’) reactor and atomisation technology has progressed at a lower rate than we had anticipated, giving rise to a need for additional funding,” Non-executive Chairman Andy Quinn said.

Shares in the company, whose technologies are deployed in a range of industries including decontamination and food and beverages, were down 57 percent at 87.75 pence by 0945 GMT, having hit their lowest level since mid-2009. They have plunged from a high of 732.5 pence around a year ago.

For the year ended Sept. 30, the company reported a pretax loss of 15.3 million pounds, compared with 8.7 million last year. Sales rose to 490,000 pounds.

“Revenues generated from customers have been slower to emerge than we had expected,” the company said. “This is a timing issue and the delay means that income we expected in the 2010/11 fiscal year should be recognised in the coming year.”

Pursuit Dynamics forecast sales of at least 22 million pounds for 2011/12 and said it expected to be cash flow positive before the end of this financial year, having missed its prior target by a year.

The company also announced the resignation of chief executive Roel Pieper, who took over in September 2009. Non-executive director Jeremy Pelczer will act as interim chief executive until a permanent replacement is found.

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