Pinnacle Technology, the Scottish cloud-based solutions group, has gone back to investors to raise another £2.65 million, just a few weeks after a successful £300,000 placing.

The Stirlingshire-based group, listed on the Alternative Investment Market, has issued 883.3 million new shares in a placing that was again oversubscribed.

Chief executive Alan Bonner said: "We are delighted, in this difficult economic climate, to have secured the level of support we have received from existing investors, as well as new institutional investors who have participated in the placing.

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"The placing will transform the company's balance sheet, and will provide Pinnacle with the necessary funding to advance our cross-selling programme, allowing us to expand the business further."

Pinnacle moved into the IT services and security sectors last year, and recently unveiled new chairman Dr James Dodd to succeed Bill Allan. Former Thus chief executive Mr Allan took over in 2010 from Graham Duncan, creator of the doomed Atlantic Telecom, as chairman of what was then Pinnacle Telecom.

Mr Bonner said: "Support from high-quality institutions has demonstrated the strength of the company, and we look forward with confidence to delivering investor value and share price appreciation."

Shares rose from 0.32p to 0.34p.