Bigtincan Holdings Limited (ASX: BTH) is a software solution provider to global organisations. The company caters to many industries like retail, financial, telecommunications, sciences, etc. Primarily it offers sales and marketing solutions to the clients through its own platform, which is used for sales content management, dynamic reporting, customer engagement, etc.
On 11th April 2019, the company released an announcement regarding its fully underwritten accelerated non-renounceable entitlement offer to raise capital of approximately A$15.6 million with A$12.1 million of the institutional component and A$3.5 million of retail component. Approximately 37,080,271 new shares are expected to be issued under a 1 for 6 fully underwritten pro-rata accelerated non-renounceable entitlement offer. The company has agreed to pay a management fee of 1% and underwriting fee of 4.5% (both of the fees are payable with respect to gross proceeds)
The issue is split between the institutional component and the retail component of the offer which are subject to reconciliation of shareholder entitlements and rounding. The new shares will rank equally with existing shares of the company in all respects. However not all the shareholders will be sent the offer documents, and it is decided on the basis of the respective country. For institutional component, these are all countries other than Australia, New Zealand, Hong Kong, Singapore, the United Kingdom, and the United States. For the retail component, these are all countries other than Australia and New Zealand.
The record date for the new share issue will be 7:00 PM (Sydney time), Tuesday, 16th April 2019. The issue date for the institutional component is 24th April 2019 whereas the issue date for the retail components is 17th May 2019. The closing date for the receipt of acceptances is 12th April 2019 for the institutional component and 10th May 2019 for retail component.
The offer price of the shares under entitlement offer is $0.42 per new Share which is 21.5% discount to closing price of A$0.535 on 10th April 2019, 11.1% discount to last 30 day volume weighted average price (VWAP) of A$0.4726 on 10th April 2019 and 19.0% discount to theoretical ex-rights price (TERP).
The proceeds from the entitlement offer will help the company to accelerate key strategic priorities. It will utilise $5 million towards the expansion of sales and marketing staff primarily in the USA & UK to support the revenue growth and customer retention. Development of products and technology will absorb $3 million to expand on integrations, accelerate software releases and addition of new product features. Another $5.5 million would be utilised towards opportunities for Merger and Acquisitions in line with acquisition criteria. This will enhance the company’s Sales Enablement Platform and strengthen its position in the market. The remaining $1.6 million would be allocated towards working capital and transaction costs.
On 6th February 2019, the company announced that it had signed a $2.7 million contract with Eaton Corporation.
The company has a market cap of A$119.03 million. On the technical front, the stock last traded on 10th April 2019 on the ASX due to the ongoing trading halt. In the last six months, the stock has returned a good return of more than 44% whereas the YTD return stands way better at 91.1%.
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