Forbidden’s confidence in the product is underlined by a number of significant contract wins in recent months.
“The board believes that these initial contracts demonstrate the quality of the company's technology and the opportunity to benefit from its commercialisation on a wider scale,” the company told investors.
“This belief is further reinforced by trends in the marketplace that have led to professional users becoming interested in cloud based solutions that will reduce the cost of their workflows whilst improving the timeliness of delivery and without impacting the quality of production.”
The bulk of the proceeds (£8mln) have been raised via an oversubscribed placing of stock, while existing investors will be given the opportunity to follow their money via an open offer of new equity at 20 pence a share. This will raise up to a further £1mln with the equity being issued at a 20% discount to Forbidden’s closing price on the day before the issue was announced.
Chief executive Stephen Streater said: "I am delighted that we have raised £8mln through this oversubscribed placing, which has included support from many new investors.
“I am glad to be providing existing qualifying shareholders with the opportunity to participate through the open offer at the same price, enabling us to raise up to a further £1mln.
“I believe that this fundraising transforms the opportunities available to the company by providing Forbidden with a much increased pool of funds from which to invest in marketing and development.”