DeClout

DeClout: its 1-for-2 rights issue at $0.11 each has been 149% subscribed. Up to 70% of the $11m net proceeds will be used to fund the group's M&A expansion plan, which may take the form of invmts of acq in similar businesses. Previously, DecLout expanded into the US via the acquisition of 50.1% of Procurri LLC. The funds raised will allow DeClout to expand into other target markets such as Europe and North Asia. Voyage Research expects DeClout to post a rebound in 2H13, on the back of full contribution and synergies from Procurri LLC. Demand is also likely to be seasonally stronger in 2H13 as customers tend to utilize the balance of their IT budgets before the end of the year. The house maintains Overweight with TP $0.28. Likes the stock for its attractive risk-reward profile at current levels.