amaysim Australia Limited secures $15.9 million on the completion of retail entitlement offer on Monday, 25 March 2019.
In the market release dated 27 March 2019, amaysim Australia Limited (ASX: AYS) announced the successful completion of the retail component of its 1 for 2.5 accelerated non-renounceable entitlement offer. The retail component raised $15.9 million through the issue of approximately 26.5 million new shares at $0.60 per share, the same price as offered to the institutional investors.
This comes in addition to the institutional component of the offer which successfully brought ~$35.1 million to the company’s wealth. The institutional shareholders took up approximately 97% of their entitlements and the company, therefore, issued ~58.5 million new shares at $0.60 per share.
The report read that the total amount raised through the entitlement offer now sits at approximately $50.6 million, reflecting the strong support of both institutional and retail investors with the sub-underwriting backing from long term shareholders.
As per the company’s information, the new shares issued under retail offer would commence trading on 2 April 2019 on the normal settlement basis. Further, the shares will reportedly rank equally with the existing shares of the company.
In the separate announcement to the Australian Securities Exchange, the company today announced that legal proceeding brought against its recently acquired energy retailer, Click Energy, has been resolved. The proceeding was raised by the government agent Australian Competition and Consumer Commission (ACCC).
Click Energy cooperated with the ACCC and the parties submitted an agreed statement of facts and consent orders to the Federal Court of Australia. The Court concluded that Click Energy contravened Australian Consumer Law with respect to its savings and discounts messages it put across to the consumers of energy products in Victoria and Queensland.
As a result, Click Energy was charged by a penalty of $900,000 and the Federal Court further ordered the Click Energy to take a number of steps such as displaying a message on its website and contacting affected customers.
amaysim Chief Executive Officer and Managing Director, Peter O'Connell stated that the matter primarily relates to the legacy of Click Energy products which have not been offered to the public for quite some time. Mr Connell assured the shareholders that the company has worked expeditiously at the time to address the ACCC’s concerns and it takes its obligations under Australian Consumer Law seriously.
The management further advised that it has taken the ACCC concerns as the opportunity to improve the way in which Click Energy advertises its products. Further, on the financial front, the company stated that the quantum of a penalty was already forecasted in FY19 full-year underlying EBITDA guidance.
In today’s trading session, AYS stock price has edged up by 2.381% to trade at $0.645 on 27 March 2019 (1:27 PM AEST).
Over the past 12 months, the stock has declined by 42.82% including a negative momentum of 28.95% recorded in the past three months. The market capitalisation of the company stands at $169.21 million as at 27 March 2019.