DDD plans $3m raising

Technology company DDD Group plc has announced plans to raise £1.26 million ($A3 million) through a placement of 11.5 million shares at 11 pence per share.

The new funds will allow the loss-making software developer, also known as Dynamic Digital Depth, to proceed with its business plans, which are focused on various 3D applications.

The placement will be at an 8.3 per cent discount to the most recent trading price on the London Stock Exchange’s Alternative Investment Market.

DDD, which was founded in Perth in 1993 and listed on AIM in 2002, has also agreed to place 8.7 million shares currently owned by funds manager Elliott Management Corporation, which is looking to reduce its stake.

In addition, the company has announced that Hans Snook, the founder and former chief executive of mobile phone company Orange, has joined its board as a non-executive director.

Mr Snook is currently the chairman of MonsterMob plc, a media and entertainment company specialising in the sale of mobile telephone entertainment content and services with operations in 20 countries.

Mr Snook has agreed to acquire 1.8 million shares, giving him a 3.1 per cent stake in the company.

Its major shareholder, Japanese company Arisawa Manufacturing Co, will maintain its 20.1 per cent shareholding by acquiring 2.3 million shares from Elliott.

DDD’s Perth-based chairman, venture capital investor Paul Kristensen, said it had been satisfying to note the interest investors had shown in participating in the placement.

“Following the placing, DDD will have the working capital required to execute its current plans for 2006,” he said.

The company’s most recent half-year result was an operating loss of £588,000, leaving it with a cash balance of £721,000 at June 30 2005.

A number of agreements reached last year are expected to boost DDD’s revenue in the current financial year.

This includes a £500,000 3D mobile telephone development agreement with one of the world’s top five mobile telephone handset makers, which it said was 80 per cent complete.

It also has an agreement with Jamster to convert images and animations from 2D to 3D.

It is expected that the resulting 3D content library will be available from Jamster, other mobile content aggregators and directly from mobile telephone network operators in conjunction with the launch of the first 3D handsets powered by the Company’s DDD Mobile™ content solution.

DDD is also working with Arisawa on applications for 3D television.