- Access Innovation Holdings (AIM) is aiming to raise $40 million to purchase EEG Enterprises
- The company has entered into a binding agreement to purchase EEG for US$34 million (nearly A$44 million)
- To pay for the purchase, AIM will be undertaking an equity raising, which will include an entitlement offer and placement
- Shares will be offered at 80 cents per share, representing a 14 per cent discount to AIMS last closing price
- Ahead of the raise, AIM has entered a trading halt, meaning company shares will be passed until Friday, April 30, or when it completes the raise
- On the market, AIM last traded at 93 cents per share on April 27
Access Innovation Holdings (AIM) is aiming to raise $40 million to purchase EEG Enterprises.
EEG is a market-leading U.S. based video and captioning technology company.
The company has entered into a binding agreement to purchase EEG for US$34 million (nearly A$44 million).
The purchase will establish AIM as a vertically integrated provider of captioning technology.
AIM will be undertaking an equity raising to pay for the acquisition. The raising will include a placement and entitlement offer for $20 million each.
The entitlement offer will see shares offered to investors for one new share for every 5.79 existing shares.
Shares will be offered at 80 cents per share, representing a 14 per cent discount to AIMS last closing price, for both the entitlement offer and placement.
AIM Co-founder and CEO Tony Abrahams said the acquisition of EEG represented a step change for the company.
“Over four decades, EEG has established itself as the market-leading provider of video and captioning services in North America, serving major enterprise, government, defence and broadcast media clients,” he said.
“EEG’s on-premises and cloud-based technology perfectly rounds out AIM’s live captioning product suite, complementing our premium human-curated
service and our recently launched Smart ASR product to enable us to meet any customer requirement,” he added.
Ahead of the raise, AIM has entered a trading halt, meaning company shares will be passed until Friday, April 30, or when it completes the raise.
On the market, AIM last traded at 93 cents per share on April 27.