nformation Technology company Bigtincan Holdings Limited secures $12.4 million capital raising from the institutional investors.
In the announcement dated 15 April 2019, Bigtincan Holdings Limited (ASX: BTH) declared the completion of the institutional component of the entitlement offer, resulting in the fresh capital raising of $12.4 million via an issue of approximately 29.5 million new shares at an offer price of A$0.42 per share.
The institutional offer comes as a part of 1 for 6 accelerated non-renounceable pro-rata entitlement offer. Fully underwritten by Baillieu Limited and Canaccord Genuity Limited, the entitlement offer aims to raise approximately $15.6 million, comprising an institutional component to raise ~A$12.1 million and a retail component to raise ~A$3.5 million at an offer price of A$0.42 per share, representing a discount of 21.5% to last close A$0.5350 on 10 April 2019.
Bigtincan intends to use the proceeds from the entitlement offer to accelerate key strategic priorities as outlined in 1HFY19 results. It includes the plan to expand sales and marketing staff, primarily in USA and UK, technology and product development to drive continued innovation, merger and acquisition opportunities in line with acquisition criteria as well as to meet the working capital transaction costs requirements.
The retail entitlement offer is scheduled to open on 23 April 2019 under which all the eligible shareholders would be given an opportunity to participate in the retail entitlement offer at the offer price of A$0.42 per share, same as the institutional entitlement offer.
Approximately A$3.2 million before costs is expected to be raised through the retail component of the Entitlement Offer. The record date of the retail entitlement offer has been fixed to 16 April 2019 with the closing date of 10 May 2019.
It has further been stated that the new shares to be issued in settlement of institutional entitlement offer will occur on 23 April 2019 to commence trading on ASX from 24 April 2019. The company told that the new shares issued pursuant to the Institutional Entitlement Offer would rank equally compared to the current shares of the company, effective the date of their issue.
As per the company’s information, eligible retail shareholders may also apply for additional shares in excess of their entitlement at the Offer Price. Additional Shares will reportedly be available under the Top-Up Facility where there is a shortfall between applications for shares received from eligible retail shareholders and the number of shares proposed to be issued under the Retail Entitlement Offer. The company clarified that there is no guarantee that applicants under the Top-Up Facility will receive all or any of the shares that they apply for under the Top-Up Facility.
As trading halt got lifted today, BTH stock price plunged as much as 14.019% to last trade at $0.460 on 15 April 2019. Over the past 12 months, the stock has witnessed a positive price change of 52.86% including an upside of 67.19% recorded in the past three months.
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