On September 27, 2018, iSignthis Limited (ASX: ISX) has placed a request with the Australian securities exchange or ASX to halt the trading of its shares immediately. As per the compliance requirements, the company has furnished the following:
- The company plans to make certain announcements in regard to the fundraising and hence, requested to halt the trading of its shares.
- As per the request made by the company, this halt shall continue till the start of the trading day on October 1, 2018 or the announcement regarding the capital raising which the company intends to make, whichever is earlier.
- Finally, the company is quite confident about the grant of the trading halt and it is completely unaware of the reasons as to why the halt shouldn’t be allowed.
Yesterday, the company came out with the press release in which it stated that the company revenue, as well as cash flow numbers, would be severely impacted and as a result, the company’s stock witnessed the downward momentum. On September 26, 2018, the stock was down 11.111%.
iSignthis Invites Petra Capital on Board
iSignthis Limited plans to raise funds from the stockbroker Petra Capital. It is expected that the company would be raising as much as $10 million. The investors were informed that the company would be placing new shares and the price for each share would be 14.5? in order to execute the fundraising amounting to $10 million. However, total 69 million shares would be placed.
This fundraising deal has been priced at 16.3% discount as compared to the VWAP (volume weighted average price) (30 days). However, the pricing also reflects a discount of 9.4% in comparison to the last closing price of the stock.
How the company plans to deploy the funds?
As per the sheet sent out to the buyers, iSignthis Limited plans to deploy the funds towards meeting the expected minimum Tier I capital requirements imposed by the Australian Prudential Regulation Authority or APRA. These capital requirements are required for the purposes of acting as an authorized deposit-taking institution or ADI and other general corporate purposes.
At the time of writing, the company had a market capitalization amounting to $160.81 million on September 27, 2018.
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