- Audinate Group (AD8) has completed a $28 million placement despite announcing it yesterday
- Approximately 5.4 million fully paid ordinary shares will be issued at a price of $5.15 each
- Audinate will use the money to increase its research and development capabilities, strengthen its balance sheet, and pursue potential mergers and acquisitions
- As well as the placement, Audinate is offering eligible shareholders the opportunity to participate in a share purchase plan to raise a further $12 million
- Audinate has ended the day 5.8 per cent in the red with shares trading for $5.36 each
Audinate Group (AD8) has successfully completed a $28 million placement despite announcing it yesterday.
Just over 24-hours ago, Audinate requested a trading halt after it announced a $40 million equity raising to accelerate growth.
The $40 million will be raised through a $28 million placement and $12 million share purchase plan.
Approximately 5.4 million fully paid ordinary shares will now be issued at a price of $5.15 each which represents a 5.1 per cent discount to five-day volume weighted average price of $5.43.
Shareholders who bid for an amount less than or equal to their pro rata amount received their full bid and shares are expected to be allocated on July 28.
Audinate will use the money to increase its research and development capabilities, extend its market position, and strengthen its balance sheet in the uncertain COVID-19 market conditions.
The funds will be used to pursue potential mergers and acquisitions, and accelerate investment in video and software products.
As well as the placement Audinate is offering eligible shareholders the opportunity to participate in a share purchase plan to raise a further $12 million.
Shareholders will be able to purchase up to $30,000 and while the price isn’t known as of yet, shares will be priced lower than the placement price of $5.15 or have a two per cent discount to the five-day volume-weighted average price.
The share purchase plan will open on July 29 and close on August 11.
Audinate has ended the day 5.8 per cent in the red with shares trading for $5.36 each in a $386.5 million market cap.