Imaging company Comeleon plc is preparing to take the US corporate gift market by storm after a share placing raised £4.2m from institutional investors.

The Tanfield Lea-based business, best known for its imaging technology for mobile phone fascia's and other electronic devices, plans to use the funding to exploit new market opportunities.

Comeleon, which has been advised on the placement by the Newcastle based team of stockbrokers Brewin Dolphin Securities, has placed 2,545,758 new ordinary shares on the market at a price of 165p per share.

The money raised by the issue will be used to develop new process technology and semi-automatic production equipment which will enable the company to licence its technology in the corporate gifts market.

It has already embarked on a research and development programme, with a successful prototype machine already developed.

Successful rollout of the new technology could create 200 new jobs at its production and research facilities in the region.

Brewin Dolphin Securities advised the company on its placement strategy, co-ordinated the professional advisers working on the placement and spoke to major institutional investors on its behalf in order to make a case for interesting them in the shares.

Comeleon plc, which employs more than 130 people, was first listed on the Alternative Investment Market of the London Stock Exchange in December 2000. The initial flotation raised £9.6m.

Richard Jones, assistant director at Brewin Dolphin Securities, said: "Innovators like Comeleon, which are operating in these hi-tech sectors need to be able to have access to new capital quickly.

"For the past month we have been working behind the scenes with Comeleon to devise a strategy to raise the required funds in the timescale required."

He added: "Despite the current market conditions, the level of interest in the placement has been high, both from existing institutional shareholders and new investors, reflecting not only Comeleon's performance since its float on AIM, but also the potential of this new venture."