On 3 April 2019, Syntonic Limited (ASX: SYT), a mobile services technology company, announced that it had received commitments from the new sophisticated, and professional investors for the placement of 233,336,450 new fully paid ordinary shares, at an issue price of 0.79 cents per share, to raise A$1.84 million from the placement.
The placement issue price of 0.79 cents per share represents a discount of 25% to the 15-day volume weighted average price of the company. The shares are expected to be issued on Monday, 8 April 2019 that will be issued within the Company’s existing 10% capacity, under ASX Listing Rule 7.1A and will not require any shareholder approval.
Further, the company has entered into a convertible securities agreement with Obsidian Global Partners, LLC under which the company has agreed to issue secured convertible notes to Obsidian on certain terms and conditions. Through the convertible note, the company will be able to raise up to A$3.54 million. The company has agreed that in the first tranche it will be issuing 1,000,000 Convertible Notes to Obsidian and raise A$1.42 million before cost. On Monday 8 April 2019, it is expected that the company will be issuing the Initial Notes.
The funds raised through the placement of shares and the issue of shares will be used for accelerating the growth of the company to capture, manage, and support its pipeline of potential clients. The funds will also be used for expansion of the global sales of the company, as well as support the team, and to meet the working capital expenditure.
Based on the continued wise cost management of the company, the company is hopeful that the additional capital will be assisting Syntonic, in achieving the targeted positive net cash position in early 2020.
Also, on the raising of A$5.38 million through a share placement and secured convertible notes, Mr Gary Greenbaum, who is the CEO and Managing Director of Syntonic stated that the company has been able to secure enough working capital. Going ahead, the company would be able to capture the growing range of opportunities for licensing Revenue Generation Platform, with leading mobile operators across the globe.
On 22 March 2019, Syntonic Limited shared an update where it highlighted that MobiFone had launched its new mobifoneGo service, which is built entirely on the revenue generation platform to capture new app-economy revenue streams.
On 25 January 2019, Syntonic Limited provided its quarterly results for the period ending 31 December 2018.
On 1 April 2019, the shares of Syntonic Limited were on a trading halt pending the release of an announcement regarding the capital raising. Post resuming the trading on 3rd April with the capital raising announcement, the company’s stock closed flat at A$0.010. The shares of the company traded flat on ASX on 4th April as well.
In the previous six months, the shares of SYT has generated a negative return of 16.67%. However, the stock has given an excellent YTD result of 81.82%. The company has a market capitalization of A$29.82 million and approximately 2.98 billion outstanding shares.
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