TIDMCLX
RNS Number : 0231B
Calnex Solutions PLC
05 October 2020
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JURISDICTION.
5 October 2020
Calnex Solutions plc
("Calnex", the "Company" or the "Group")
Admission to AIM and First Day of Dealings
GBP22.5 million raised in oversubscribed placing
Calnex Solutions plc (AIM: CLX), an established provider of test
and measurement solutions for the global telecommunications sector,
is pleased to announce the admission today of its new and existing
ordinary shares of 0.125 pence each ("Ordinary Shares") to trading
on the AIM market of the London Stock Exchange ("Admission").
Dealings in the Ordinary Shares will commence today at 8.00 a.m.
under the ticker "CLX" and the ISIN "GB00BMBK7016". Cenkos
Securities plc ("Cenkos") is acting as Nominated Advisor and Broker
to the Company.
The Company has successfully raised GBP22.5 million (before
expenses) by way of a significantly oversubscribed placing of
46,875,000 new and existing Ordinary Shares (the "Placing"), at a
price of 48.0 pence per share (the "Placing Price"). Calnex's
market capitalisation at the Placing Price on admission will be
GBP42 million.
Placing Statistics:
Placing Price per ordinary share 48 pence
Gross proceeds of the Placing GBP22.5 million
Free float 43%
Gross proceeds of the Placing receivable by GBP6.0 million
the Company
Gross proceeds of the Placing receivable by GBP16.5 million
the selling shareholders
Number of Ordinary Shares in issue immediately
following Admission 87,500,000
Market capitalisation of the Company at the GBP42.0 million
Placing Price
Tommy Cook, Chief Executive Officer and founder of Calnex,
said:
"Joining AIM today is a significant landmark for Calnex. The
successful fundraise and move onto the public markets provides us
with the resources to expand our product portfolio, both
organically and through acquisition, to take advantage of the
significant structural changes taking place in the global telecoms
industry.
"I would like to take this opportunity to thank the Calnex team
for all their hard work through the years, our existing
shareholders for their ongoing support, and to welcome our new
shareholders to the register.
"With many of the world's leading players in the telecoms market
on our client roster, a proven track record in innovation, strong
financial position and global distribution capability, we are
confident in our ability to capitalise on the opportunities
ahead."
For more information, please contact:
Calnex Solutions plc Via Alma PR
Tommy Cook, Chief Executive Officer
Ashleigh Greenan, Chief Financial Officer
+44 (0)131 220
Cenkos Securities plc - NOMAD 6939
Derrick Lee, Peter Lynch
+ 44(0) 20 3405
Alma PR 0213
Caroline Forde, Harriet Jackson
Overview of Calnex
Calnex designs, produces and markets test instrumentation and
solutions for network synchronization and network emulation,
enabling its customers to validate the performance of the critical
infrastructure associated with telecoms networks. To date, Calnex
has secured and delivered orders to over 600 customer sites in 68
countries across the world. Customers include BT, China Mobile,
NTT, Ericsson, Nokia, Intel, Qualcomm, IBM and Facebook.
Founded in 2006, Calnex is headquartered in Linlithgow,
Scotland, with additional locations in Belfast, Northern Ireland
and California in the US, supported by sales teams in China and
India. Calnex has a global network of partners, providing a
worldwide distribution capability.
Key Strengths
-- Calnex has an established position in the test and
measurement industry, providing its equipment to many of the
world's leading Telecoms Network Operators, Equipment Vendors and
Component Manufacturers. It has also had success with Hyperscale
companies (operating large data centres) and Large Enterprises
(operating their own networks).
-- Calnex has a proven track record of developing innovative and
advanced test solutions for its customers. Calnex's products are
often differentiated by their high specifications and the
complexity of the product platforms. This has been achieved by
delivering a strategy focused on R&D, IP and product
development.
-- Calnex's close relationships with its customers, key
regulatory bodies and leading market participants, provides
valuable insight into its customers' technology roadmap and likely
industry and regulatory developments, enabling Calnex to focus its
R&D strategy and resources.
-- Calnex's management team has experience in successfully
integrating bolt-on acquisitions, which benefit from access to the
Company's global sales channels and advanced approach to product
development.
-- Calnex has a strong financial track record, delivering
historical revenue CAGR since FY15 of approximately 16 per cent.
The Company is profitable and cash generative, with a record order
backlog going into FY21 and a strong sales pipeline.
-- Calnex benefits from high levels of repeat revenues, with
over 80 per cent. of its revenue over the last three years coming
from repeat customers and an average length of engagement with its
top ten customers in FY20 of nine years. The Company's top ten
customers accounted for over 50 per cent. of revenues in FY20. In
recent years the Company's top ten customers have included
Non-Telecoms customers. In FY20, these Non-Telecoms customers
represented 14 per cent. of the top ten customer revenue.
-- The Telecoms industry is currently experiencing unprecedented
levels of change as a result of major evolutionary trends affecting
the global Telecoms market. The migration of the mobile networks to
5G, the emergence of the Internet of Things and the shift to using
cloud computing are all agents of change to the structure of
Telecom networks around the world. The Directors believe that
Calnex has the potential to capitalise on the opportunities created
by the changes to the Telecoms market, which are expected to
generate sustainable growth in the future for the Company.
-- The global market for Telecoms test and measurement equipment
for mobile networks alone is forecast by Frost & Sullivan to
expand at a CAGR of 11.5 per cent. from 2020 through to 2024, and
the Directors believe that the Company has the potential to
capitalise on the opportunities created by this expansion and
generate sustainable revenue growth in the near to medium term.
Calnex has a range of test and measurement solutions ready to
meet the early requirements of 5G market participants. The Company
is well placed to evolve its current products, alongside the
introduction of new products, to meet its customers' future
requirements as the roll out of 5G progresses.
To find out more, please visit:
https://www.calnexsol.com/en/
Important Information
This announcement does not constitute, or form part of, any
offer or invitation to sell, allot or issue, or any solicitation of
any offer to purchase or subscribe for, any securities in the
Company in any jurisdiction nor shall it, or any part of it, or the
fact of its distribution, form the basis of, or be relied on in
connection with or act as an inducement to enter into, any contract
or commitment therefor.
Cenkos is acting exclusively for the Company and no one else in
connection with the Placing and Admission. Cenkos will not regard
any other person as its client in relation to the Placing and
Admission, and will not be responsible to anyone other than the
Company for providing the protections afforded to their clients or
for giving advice in relation to the Placing and Admission or any
transaction or arrangement referred to herein.
This announcement contains certain statements that are, or may
be, forward looking statements with respect to the financial
condition, results of operations, business achievements and/or
investment strategy of the Company. Such forward looking statements
are based on the Company's board of directors' (the "Board")
expectations of external conditions and events, current business
strategy, plans and the other objectives of management for future
operations, and estimates and projections of the Company's
financial performance. Though the Board believes these expectations
to be reasonable at the date of this announcement they may prove to
be erroneous. Forward looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, achievements or performance of the Company, or the
industry in which the Company operates, to be materially different
from any future results, achievements or performance expressed or
implied by such forward looking statements.
Certain figures in this announcement, including financial
information, have been subject to rounding adjustments.
Accordingly, in certain instances, the sum or percentage change of
the numbers contained in this announcement may not conform exactly
to the total figure given.
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