Syntonic Limited’s stock crashed on ASX after the company revealed the private placement of over 200 million shares at a heavily discounted price. It outlines the plunge of 12.5% in the daily price change of SYT stock which last traded at $0.007 on 19 December 2018.
On Tuesday, the information technology company Syntonic Limited (ASX: SYT) announced the completion of private placement of 201, 999, 998 new shares at a discounted price of 0.55 cents per share. The issue price reflects as heavy as 39% discount to Syntonic’s last closing price of 0.90 cents per share. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]
With this completion of bookbuild, Syntonic has raised $1.1 million from new and existing investors of the company. It has been stated that proceeds raised from the Placement would be utilized for the continued expansion of Syntonic’s global strategy for its products and services by supporting the marketing and promotional activities for its new mobile commerce business in Brazil.
Syntonic’s Managing Director and CEO Gary Greenbaum said that the successful capital raise of $1.1 million coincides with the Company demonstrating record growth in active users, operator agreements, and white-labeled platform deployments. He added, “Syntonic has successfully diversified its revenue streams through the deployment of white-labeled technologies with Tier-1 telecommunications providers such as Smart Communications and Tata Communications.”
Driven by these mobile operator licensing agreements, the company has been delivering solid growth in revenues, foreshadowed by the continued growth in the Company’s Quarterly Average User metric, with 5.96 million quarterly average users reported mid-quarter (15 November 2018), compared to 4.15 million for the quarter ending 30 September 2018.
Mr. Greenbaum further confirmed that the deployment of Syntonic’s platform technologies to additional operator licensees such as Vodacom as well as partners in Vietnam, Ghana, Kenya, and Turkey is progressing well with new revenue streams from the deployments expected early in the calendar year 2019.
The management concluded that the funds raised via private placement would enable the Company to accelerate further technology deployments as well as invest in marketing activities for our newly acquired mobile commerce business in Brazil. Moreover, the shares under the settlement of placement are expected to be issued on Monday 24 December 2018.
Syntonic Limited is an ASX listed information technology company known for its two mobile technology services: Freeway by Syntonic® and Syntonic DataFlex®. Based in Seattle, Washington USA, the company offers specialized services in mobile computing, sponsored content services, and cost-effective mobile split billing solution as well as B2B and B2C products to market.
Over the past one year, Syntonic’s stock has massively fallen by 59.09% while in the past three months, it is down by 30.77%.
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