Zamano To Build a Smartphone Development Team

Zamano  is raising €2.5 million to fund expansion by developing smartphone applications - plans to hire skilled developers

Mobile development company Zamano  has applied to The Irish and London Stock Exchanges  for permision  to raise funding of  €2.5 million by issuing new shares to its partner the Ulster Bank Diageo Venture Fund. 

Zamano agreed  to raise €2.5 million in  September by issuing new shares, in order to accelerate the Group's growth strategy by capitalising on its strengths in smartphone and mobile application development.

With demand for smartphone applications growing rapidly - the market is expected to increase from €4 billion today to €16 billion by 2013, according to  Wireless Expertise - Zamano wants to grasp this opportunity by recruiting  a dedicated smartphone application team.

John O'Shea, CEO of zamano, (pictured) said: "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. We look forward to working with The Ulster Bank Diageo Venture Fund, and our existing supportive shareholders, to take the Group to the next stage of its development. Finally, the Board remains comfortable with market expectations for profitability for the full year to 31 December 2009."

The  new money will also  enable zamano to capitalise on other mobile industry developments, by funding its expansion into new territories and to reduce its debt by €1 million, further strengthening its balance sheet.

According to Gartner Group, mobile advertising is set to grow from €1billion billion today to €15billion by 2013. This substantial increase in the availability of mobile advertising  will  also provide zamano with new opportunities.

Zamano has agreed to raise approximately €2.5 million  of new capital, by placing 13,888,889 new shares with The Ulster Bank Diageo Venture Fund at a price of 18 cent. The Placing Shares will, when issued, be credited as fully paid and will be all respects like the existing ordinary shares of 0.1 cent each in  the Company, conferring on owners the right to receive all dividends and other distributions paid after the date of issue of the Placing Shares.

It is expected that application will be made to The Irish Stock Exchange and the London Stock Exchange for the Placing Shares to be admitted to trading on the IEX Market of the Irish Exchange ('IEX') and the AIM Market of the London Stock Exchange  on 23 December. Dealing in them is expected to commence on the same date.

If  both  Exchanges agree, and the placing is successful, the number of Zamano Shares available will increase by 17% on 23 December.

Following the Placing, there will be 94,962,911 ordinary shares of 0.1 cent each in issue in the capital of the Company. The Placing Shares represent approximately 17.1 per cent. of the existing issued share capital of the Company and approximately 14.6 per cent. of the enlarged share capital of the Company.

The Placing is conditional, upon admission of the Placing Shares to trading on IEX and AIM and no material change in the circumstances of the Company having occurred prior to admission of the Placing Shares (pursuant to the terms of the Placing Agreement).

The Placing is at a discount of approximately 5.3 per cent. to the official closing price of the ordinary shares of the Company of 19 cent per share, as derived from the daily official list of the Irish Stock Exchange on 9 December 2009, being the latest date prior to the announcement of the Placing.

The Ulster Bank Diageo Venture Fund is a €75 million fund that invests in Irish SMEs across a range of sectors and all stages of development. The Fund, which was launched in 2008 under Enterprise Ireland's Seed & Venture Capital Programme 2007-2010, is managed by NCB Ventures.

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