Corel has found an "institutional investor", giving the company hope of recovering from its financial crisis.

Corel has entered into a share purchase agreement with the unnamed investor. Subject to agreement, including the receipt of all regulatory approvals, Corel now has access to a cash reserve for the next 24 months. The support is estimated to be worth about $56 million.

Three steps to happiness The financing will enable Corel to make investments in future projects, and is one of the three key steps - along with restructuring and investment - the company is taking to reinvigorate itself following a period of grave financial insecurity.

The company has agreed to sell its new backer up to 14,690,000 shares in what the company calls "periodic draw down periods" over 24 months.

Future plans John Bliane, Corel’s chief financial officer, said: "We are pleased to establish this financing arrangement. We expect it will give us the flexibility to pursue our strategic goals. The transaction is an important part of the solid foundation we are building to support Corel’s long-term growth."

Corel is now moving toward realigning its organisational structure – and warns that it will be making further announcements by the end of September.

Though the institutional investor has not been named, Corel did reveal that Whale Securities acted as finders for the transaction.