Run DMC Posted 25 March 1998 Memory Corporation, the niche Scottish DRAM vendor , has gone cap in hand to the market, for a fresh injection of working capital. It is raising 4.5 million netto through a rights issue which will soak up 25.78 per cent of the enlarged share capital.
Rights issues can be tricky.
Existing shareholders don t like seeing their stakes diluted. But our guess is that Beeson Gregory, Memory Corp s new broker, will get this away without too much trouble. Memory Corp will use the money to fund product development and complete its transition to an intellectual property company. It will also strengthen management, engineering and marketing departments. Memory Corp s plans for the money are quite modest.