NATURAL language software provider Arria NLG has raised more than £3 million by issuing convertible loan notes to an existing shareholder.

The company, which uses technology developed at Aberdeen University to translate complex data into readable text and graphics, confirmed it has entered into a subscription agreement with a Bahamas based investment fund. The Ikonic Fund SAC has 3.125 million shares, equivalent to 3.06 per cent of Arria, as well as warrants to subscribe for a further 3.125 million.

Arria said it will use the money to grow its activities in the oil and gas and financial services sectors and is also considering further fundraising. The first tranche of £1.23 million from the notes will be released before the end of this year, the second for the same sum be the end of next year and the third, for the amount of £616,000, by March 31, 2016.

Stuart Rogers, chairman, said: "It is now appropriate for the company to raise additional funding to enable it to continue its commercial progress. The issue of the notes to Ikonic is the start of this process and we are continuing our fundraising activities. I anticipate that the company will be raising additional equity or debt funding in the near future."

Ikonic will be able to convert the outstanding sum on the notes plus any unpaid interest into new shares, at a price of 40p per share, during the first 10 business days of each calendar year.Under the terms of the subscription Ikonic, or any parties it is associated with, have agreed not to acquire more than 25 per cent of Arria until at least November 2019, when the notes mature.