Microlise set to invest in TrakM8
Telematics provider Trakm8 has issued a statement detailing a proposed share subscription that will see fellow telematics company Microlise Holdings Ltd take a 20% interest in the company.
The news follows Trakm8’s earlier announcement of disappointing half-year result, with revenues down 38% and a slump in share price.
However, the two companies are confident the partnership will lead to stronger growth and increased opportunities.
Trakm8 is raising £3 million via the move, in which the directors are also investing. It is subject to approval at a General Meeting of Trakm8 shareholders on 24th December. If approved, Nadeem Raza, chief executive officer of Microlise, will join Trakm8’s board as a non-executive director.
The two companies will continue to operate independently as they don’t directly compete but will explore options for future collaboration.
John Watkins, Trakm8’s executive Chairman, said: “The investment by the Directors demonstrates our ongoing confidence in Trakm8. It will further strengthen the company’s balance sheet and support our plans for future growth.