Datalex secures €10m in new funding – RTE.ie

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Travel software company Datalex has raised €3.86m through a placing of new ordinary shares and has also entered into a conditional  €6.14m secured loan facility agreement with its biggest shareholder. 

This will make up to €10m available to the company, which last month was forced to revise its profit forecasts for this year. 

Earlier this week, Datalex had said it was talks with Dermot Desmond’s investment company IIU – the biggest single investor in the company – about raising €10m in funding. 

In a statement today, Datax said it had entered into the loan facility deal with the investment vehicle owned and controlled by Dermot Desmond.

The company said it will use the proceeds of the placing and loan to fund working capital and for general corporate purposes.

“The equity investment and loan facility being provided by Mr Desmond at this time is a very welcome development for Datalex,” commented Paschal Taggart, chairman of the company. 

“This strong support from our largest shareholder gives us valuable additional financial flexibility as we move towards realising significant platform revenues that flow from go-live deployments with key customers,” he added.

In January, Datalex said that it may have misstated its results for the first half of 2018, leading it to forecast a loss of up to $4m for the full year.

That saw shares in the firm drop by almost 60% in one day, with Datalex shares currently trading 66% lower than in mid-January.

Last month it revised its forecast earnings before interest, tax, depreciation and amortisation for 2019 to $3-$3.5m. 

It also announced a cost-cutting plan that it expects to deliver savings of $8-$8.5m this year, with some jobs at the firm also expected to go.