Family Zone Secured Binding Commitment To Raise Capital Around $2.5 Mn

  • Dec 21, 2018 AEDT
  • Team Kalkine
Family Zone Secured Binding Commitment To Raise Capital Around $2.5 Mn

Family Zone Cyber Safety Limited (ASX: FZOis a technology company which designs and develops cloud-based parental control solutions. The Company designs and develops cloud-based parental control solutions. The company’s operations are into the areas of cyber security & safety. Its operations are concentrated upon providing a cyber ecosystem to keep kids safe online and manage digital lifestyles. The company has innovated a one of its kind cloud-based solution which integrates the Australian innovation with the foremost global technology. Family Zone Cyber Safety serves customers in Australia.

The company has via a recent ASX release stated that it has received binding commitments to raise $2.5 million (before costs) in placement of 11.1 million shares to sophisticated institutional investors at $0.225 per share. The Company has received strong support from existing investors and is pleased to welcome strategically significant investors as new shareholders including SCML Group. SCML are the backers of Asian focused technology provider Netlinkz. SCML, Netlinkz and Family Zone have agreed to work together on distribution opportunities in India and in Netlinkz’s strongest market, China. It is noteworthy that Netlinkz has recently entered into a reseller agreement to sell its patented software. Following this news, the share price of the company increased by 4.545% on December 21, 2018.

Money received from the capital raising will support the rollout of Family Zone's newly launched FZ ONE, which is a first of its kind cyber safe mobile phone. The FZ ONE is currently being promoted through Woolworths locations nationwide and online ahead of the crucial back-to-school period. The funds raised through this placement will empower Family Zone to broaden this rollout to new retail channels and support working capital requirements.

The Company has an intention to issue the placement shares under its ASX Listing Rule 7.1 capacity. The issue price of $0.225 per share represents a premium to the last traded price and a 23% discount to the 30-Day volume-weighted average price.

Family Zone Managing Director, Tim Levy, said that the management is pleased with the level and quality of investor interest in this placement. This marks clear recognition of the value of the company’s expansion strategy and its ability to execute.

The company is making exciting progress across all the three operating segments, i.e., Consumer, Education, and Wholesale. The funds raised through this placement will underpin the company’s plans to continue its growth drive. The management also recognizes the importance of capital management and thus implementing initiatives to bring forward the Company’s break-even point.

Mr. Levy reiterated that the management is particularly excited to welcome new strategic investors to the Company and in specifically the team behind Netlinkz, given their deep experience and relationships in China.

Meanwhile, the share price of the company has fallen 53.68 percent in the past six months as on 18 December 2018. FZO’s shares traded at $0.23 with a market capitalization of circa $32.98 Million as on 21 December 2018 (AEST 04:00 PM).


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK