- 5G Networks (5GN) has launched a $22.3 million capital raise to accelerate organic growth initiatives and fund acquisition opportunities
- This money will be raised through an $18.3 million placement and a $4 million share purchase plan
- For the placement, a total of 14.8 million shares will be issued at a price of $1.23 each and once completed, 5G Networks will have a net cash position of $16.4 million
- In regards to the share purchase plan, eligible shareholders will be able to purchase up to $30,000 worth of shares
- 5G Networks is steady on the market today and shares are trading for $1.35 each
5G Networks (5GN) has launched a $22.3 million capital raise to accelerate organic growth initiatives and fund acquisition opportunities.
This money will be raised through an $18.3 million placement and a $4 million share purchase plan.
Placement
For the placement, a total of 14.8 million fully paid shares will be issued at a price of $1.23 per share.
This price represents an 8.9 per cent discount to the last closing price of $1.35 from June 9, and a 5.7 per cent discount to the five-day volume-weighted average price.
Shares are expected to settle on June 15 and be allocated on June 16. Shares can then begin trading on the ASX on June 17.
Once the placement is complete, 5G Networks will have a net cash position of $16.4 million.
Share purchase plan
The remaining $4 million will be raised through a share purchase plan but should then company receive strong interest then it has the right to increase the size.
5G Networks can also scale back any applications it receives.
Eligible shareholders will be able to purchase up to $30,000 worth of shares and while the exact share price isn’t known yet, shares will be available for less than the placement price.
The share purchase plan will open on June 17, close on July 8, and shares will be allocated on July 14. Shares can then start trading on the ASX from July 16.
As stated before, 5G Networks will use the money to fund its growth strategy and acquisition opportunities.
These opportunities primarily consist of investing in the expansion of the fibre network in Sydney and Melbourne, and increasing the company’s focus on new builds in Adelaide and Brisbane.
The company will also use the money to access unique growth opportunities both during and post COVID-19.
5G Networks is steady on the market today and shares are trading for $1.35 each at 12:30 pm AEST.