Exeter tech company Blur Group is poised to secure a £1.5million funding bid as the board of directors are set to step aside.
Last week, the AIM listed company – billed as one the UK’s most exciting start-ups – said it would cut pay for its management team as shareholders were warned that their investments could be worth nothing, unless funding was secured.
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Now, a fresh board of directors have signalled they will invest a total £300,000 with third party investment identified through the placing of shares at 1.75p each, according to a new report to the market.
Founder Philip Letts currently remains as Chief Executive though no formal announcement has been made on the position after the board restructure.
The changes will bring enough working capital for at least 12 months.
It intends to attract more blue chip multinational customers and cut costs by reducing its management team and board salaries, a potential move to more affordable office space and a ‘reconfiguration of delivery team size as platform roll outs are achieved.
David Rowe, Chief Executive of Black Green Capital, a Venture Capital investment company based in London specialising in disruptive digital transformation, is set to become the new company Chairman.
He said: “Blur has promised a lot but is yet to deliver to shareholders. Its core proposition of applying automation to the Enterprise procurement process has a number of strong prospects in the pipeline. The task of the restructured board is to ensure that the Company has the right approach and support to convert these prospects into reference customers in the next 12 months and build on its A.I. capabilities. The restructured board will be carrying out a review in the coming weeks and months with a view to making recommendations on improvements to the business plan in order to optimise the business.”
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Current chairman David Sherriff, Roger de Peyrecave (non-executive director), Rob Wirszycz (non-executive director) and Kara Cardinale (Chief Delivery Officer) will step down from the board. Tim Allen, finance director, will also step down from the board shortly after the Annual General Meeting on July 31.
James Porter, blur’s existing financial controller, will serve as interim finance lead while a replacement is found.
Preeti Mardia, Richard Rae and Richard Croft are due to be appointed to the board as non-executive directors.
The company employs around 62 people at its HQ at Exeter Science Park.
Blur was founded in 2006 by Philip Letts and was listed on AIM in 2012.
Blur, which reports in dollars, went through $900,000 in cash in the fourth quarter of last year and had a cash balance of $1.14 million at the end of May.
At the halfway stage Blur announced pre-tax losses of $2.88 million, down from $4.74 million in the same period of 2015.
The company temporarily ceased trading on AIM because it could bot file its accounts by the June deadline while negotiations with investors were ongoing.
It is expected that trading on AIM will resume on August 1 with the release of the Group’s final results for the year ended 31 December 2016.
Source: Devon live