ikeGPS Group Limited, the company setting the standard for the collection, management and analysis of overhead pole and asset information for electric utilities, communications companies and their engineering service providers, is pleased to announce that it has successfully completed a fully subscribed equity offering of New Fully Paid Common Shares. shares (ânew sharesâ) to raise approximately A $ 18.3 million (approximately NZ $ 19.2 million). The New Shares will be issued to new and existing informed investors (âPlacementâ).
Commenting on the successful placement, IKE CEO Glenn Milnes said: âWe are extremely pleased with the level of support we have received from our loyal shareholders as well as the new institutional funds. This support places us in a strong position to execute our business plan and our goal of being the standard for the collection, analysis and management of distribution assets for electric utilities, communication groups and engineering services companies in North America.
“IKE has strong favorable winds in the North American market which we believe will continue to support long-term growth, with more than US $ 350 billion slated to be invested in fiber and 5G infrastructure over the course of over the next five years and more, and with more than 3,000 electric utilities. must meet the challenges of building, strengthening and maintaining the network. Our solutions meet these needs by providing network construction and maintenance processes that are faster, more secure, and at a higher quality data standard.
âIKE has come out of COVID-19 and its challenges in a position of strength, as evidenced by business performance over the past two quarters where we closed approximately NZ $ 11.5 million in new contracts against a figure of Annual business of NZ $ 9.3 million for fiscal year 21. This, combined with a strong sales pipeline and a strong balance sheet, gives us the assurance of substantial revenue growth over the year. EX22 and beyond. “
The shares in the placement will be issued at a price of A $ 0.95 (NZ $ 1.00) per share, which represents a 13.0% discount from the volume weighted average price (VWAP) of the shares of the Company traded on the ASX, and a 14.6% discount over the VWAP. Company shares traded on the NZX, during the 5 days up to August 6, 2021 inclusive (the last trading day before the announcement of the Placement).
The New Shares issued under the Placement will rank pari passu with the existing IKE shares in circulation from their date of issue.
Bell Potter Securities Limited acted as the lead manager, underwriter and bookrunner of the Offering.
Use of funds
IKE will have net pro forma cash flow of approximately A $ 27 million (approximately NZ $ 29 million) following completion of the offer. Proceeds from the placement and the SPP will be used to support recent client gains, a growing sales pipeline and provide capacity for potential acquisition opportunities.
Stock purchase plan
Following the completion of the Placement, IKE will proceed with an offer of New Shares by means of a share purchase plan (SPP) subscribed for up to AU $ 3 million (approximately NZ $ 3.1 million). to existing shareholders of the Company with a registered address in New Zealand and Australia at 7:00 p.m. NZST (5:00 p.m. Sydney time, Australia) on Tuesday August 10, 2021, and who are not located in the United States or acting on behalf of account or for the benefit of a person in the United States (eligible shareholders).
The SPP will offer each Eligible Shareholder the opportunity to request up to A $ 14,300 / NZ $ 15,000 of New Shares at A $ 0.95 (NZ $ 1.00) being the price payable per New Share in the Placement. The SPP aims to raise up to AU $ 3 million (approximately NZ $ 3.1 million), while retaining the flexibility to accept requests exceeding this amount.
If scaling is required, IKE will tailor requests based on the number of shares held by the requester on the date of registration and otherwise at its discretion. In the event of scaling up, the value of the SPP shares allocated to investors may be lower than the plot initially requested. If this happens, any excess money will be refunded (interest free). IKE plans to announce the final outcome of the SPP, including any scaling, on August 31, 2021.
The SPP Offer Booklet containing further details on the SPP is expected to be published on August 16, 2021 and will be sent to all Eligible Shareholders.
Each New Share issued under the SPP will rank the same as the existing Shares as of its issue date and IKE will request a listing of the New Shares issued under the SPP on the NZX and ASX.
Shareholder approval is not required for the issuance of shares under the RPD.
This announcement has been authorized for airing on NZX and ASX by the IKE board of directors.
Please see the link below for more details
IKE Announces A $ 21.3 Million Fully Subscribed Fund Raising – Amended
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