Phorm to Sell $3m Shares to Fund Expansion

Behavioural ad targeting firm Phorm has placed 1,176,000 new common shares on the AIM market of the London Stock Exchange, in a bid to raise around $3m, which it plans to use to expand its service in Brazil and other future markets.

Last week, Phorm reported that during 2009, it lost $30m, despite selling 19.4% of its shares to institutional investors, in a move which raised around £15m.

Back in 2007, the firm found itself the subject of some unwelcome publicity when BT used business customers' data without permission, in a trial run for its 'Webwise' software.

Phorm has now re-branded the software as Navegador, and launched it in Brazil, where it has moved some of its operational activities from the UK.

The new shares, which are being issued by Mirabaud Securities on behalf of Phorm, represent about 6.4% of all shares in the company.

'Following the successful launch in Brazil, I am pleased that shareholders have demonstrated their continuing support through this placing,' stated CEO Kent Ertugrul. 'We now intend to pursue the financial and operational strategies outlined in our recent full year results statement.'

Web site: www.phorm.com .