The company said on Wednesday that it raised \u00a315m through a placing of 3.3m shares at \u00a34.50 each, a discount of 85p on Tuesday’s closing price. The placing represents 19.4pc of Phorm’s enlarged share capital.<\/p>\n
It comes just a week after Kent Ertugrul, Phorm’s chief executive, said the company was in a “good” financial position and did not need to raise fresh cash.<\/p>\n
Michael Armitage, analyst at Blue Oar, said: “A cash-call was inevitable. I estimate Phorm has about \u00a38m of cash. If they continue burning through cash [at the current rate] they would have run out by the end of the year.”<\/p>\n
The roll-out of Phorm’s Webwise technology has been dogged by controversy following news that BT ran two trials using the software without seeking its customers’ permission in 2006 and 2007.<\/p>\n
BT apologised and said no customers’ IP [internet computer] addresses were divulged and it had no way of knowing who was taking part in the trials. The UK government ruled it had not breached privacy laws.<\/p>\n
The Home Office and Information Commissioner ruled Phorm’s technology does not breach users’ privacy, as long as they are asked for consent.<\/p>\n
Several British internet service providers (ISPs) have expressed interest in the technology, but none has yet announced deals with Phorm.<\/p>\n
Mr Etrugul said: “I am pleased that the financial community has demonstrated its support for Phorm, with a substantially over-subscribed offering.”<\/p>\n
By Rupert Neate<\/p>\n","protected":false},"excerpt":{"rendered":"
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