Datalex, the airline retail software supplier, announced on Thursday its intention to amass €25 million in early autumn with the aim to settle its high-interest debts owed to its key trader, Dermot Desmond, and gather operational capital to finance the expansion of their brand.
Tireragh Limited, owned by Mr Desmond, had an unsettled loan of €13 million with Datalex by the end of the previous year. This loan possessed an 18 percent interest rate of which approximately €1.9 million of interest remained unpaid.
The board plans to initiate a €25 million share raising venture in the early autumn, according to David Hargaden, the chairman of Datalex, speaking at the firm’s annual general assembly on Thursday.
He stated the anticipated fundraise is aimed at facilitating the organisation to completely pay off its existing loan from Tireragh Limited. It would also provide ample working capital to increase investment in product development and implementation projects, whilst competing for new revenue generation opportunities.
Last month’s annual report from Datalex verified a growth of 23 percent in its annual revenue to $29.8 million (€27.8 million), with its pre-tax losses reduced to $2.9 million from a $5.3 million deficit in 2022.
In addition, Mr Desmond granted the company some financial reprieve by proposing to prolong his loan’s tenure by an extra six months to July 1st, 2025. He also consented to provide a new €10 million facility if the share raise falls through.