cc-hubwoo confirmed 2 days ago its great ambitions for 2007 but needs more cash to turn its vision into reality and reach profitability.
In a press release dated 16th of January cc-hubwoo (world’s leading provider for on-demand electronic procurement solutions and supplier network management with 60 worldwide buying corporation as customers) announced the launched of a EUR 9.5 million capital increase with preferential subscription rights. The subscription price has been set at EURO 1.10, meaning a discount of 40.5% based on the closing price of 15 January 2007. Subscription is opened until the 2nd of February.
This increase of capital is called to finance the company growth and its efforts to improve profitability:
The company intends to use the proceeds of this capital increase to finance its
development in two areas and accelerate the reduction of its infrastructure costs:
- cc-hubwoo intends to launch a professional services business beyond the current model, which is focused on the implementation of projects,
- As announced in its strategic plan presented in September 2006, the company intends to launch a new set of business offerings oriented towards its « Supplier »
- cc-hubwoo intends to continue to structurally reduce its costs through projects such as the consolidation of datacenters, centralization of functions, and rationalization of offices.
Though cc-hubwoo needs more cash to finance its plans in 2007 and beyond, Alain Andreoli, CEO of cc-hubwoo, re-iterated that he expects the company to be EBITDA positive for the full year 2006, and to be cash positive and profitable in 2007.
The results of 2006, to be published the 29th of January, will be quite interesting to analyse.