ARRIA NLG has seen its shares rise eight per cent after securing a funding package of £3.75 million to allay immediate fears over its future.
The AIM-listed company, which uses technology from Aberdeen University to generate readable text from complex data, had warned in April there was uncertainty over its ability to continue as a going concern.
It suffered a double blow as largest customer Shell ended its contract which then meant fundraising talks, which were at an advanced stage, had to be abandoned.
Now the business has confirmed £3.75m of loan notes, at a price of 40p per share, have been agreed.
The Bahamas based Ikonic Fund is taking almost £1.85m of the loan notes while £1.9m is going to existing shareholders.
The Ikonic notes are actually an earlier drawdown of instalments which would not have been available to Arria until the end of this year and the end of March next year.
Ikonic and subscribers for the loan notes will also get warrants, described as B warrants, which can be exercised at a price of 12p per share over the next four years.
Arria also plans to have a dual listing on the New Zealand Stock Exchange which it hopes to complete by the end of this year.
Both parts of the financial plan have been put together by New Zealand based investment bank MSL Capital Markets, which is a long time adviser to Arria.
MSL, which will receive one million B warrants for its services, has also been authorised to raise subscriptions for a further £1.25m of loan notes if demand is there.
Stuart Rogers, chairman and chief executive of Arria, said: "I am delighted we have concluded this next stage of our capital raising, which provides stability and support to our current operations as it directly addresses our near to medium-term working capital requirements."
Emmanuel Alexiou, from Colina Insurance, the majority shareholder of The Ikonic Fund, said: "We are very pleased to support Arria's innovative two-stage capital program. With the loan notes convertible to shares at 40p, and with the addition of warrants at 12p, we are making a bold statement to the market: The long-term potential of Arria's NLG technologies is unaffected by short-term vagaries, and the two-stage program will provide the operating capital Arria needs to deliver its artificial intelligence solutions globally."
Arria shares closed up 1.38p at 18.5p.
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