Phorm Raises £15m Through Stock Sale

Behavioural ad technology firm Phorm has sold 19.4% of its shares to institutional investors, in order to raise around £15m. It will use the money to continue the implementation of its service in the UK and Korean markets.

The company, whose software scans an individual's browsing history and uses the data to deliver relevant ads on subscriber web sites, placed the shares with institutions at 450p, a discount from yesterday's 535p closing price.

Phorm drew criticism in 2006 when it conducting secret trials of its Webwise software with telecoms giant BT. BT denied the trials breached privacy laws, claiming that users' personal data was anonymised.

Since then, the European Commission has launched legal action against the UK Government, over its alleged failure to force the firm to comply with EU data protection and privacy rules. The Government also claims the firm did not breach privacy laws.

CEO Kent Ertugrul commented: 'We are pleased that both existing shareholders as well as a number of equally well-respected financial institutions not previously shareholders in Phorm have participated in this capital raise. With the addition of these new funds, we are well positioned to deliver strong growth as we engage with ISPs across the globe with a view to deployment in multiple markets.'

Trading in the shares is expected to take place on AIM at 8am on Friday, 12 June 2009.

Last week, Phorm launched Discover; a new patent-pending widget that highlights web site content which it recognises as being of interest to visitors from their previous web-surfing history.

Web site: www.phorm.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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