8 May 2015 – placing

Falanx has announced that it is raising gross proceeds of £2.64m through a placing and subscription of 18,878,564 new shares at 14p each.  Of this £500k is being used to extend the global licence agreement with Assuria to 16  April 2018 and to finance development of the Falanx and Assuria Cloud partnership.  The remaining £2.14m will be used for the continued sales and marketing development of Falanx’s cloud-based cyber security managed services.  Although the news has dragged the share price lower in the near term we keep our SPECULATIVE BUY rating.