- Technology company Audinate Group (AD8) has requested a trading halt after announcing a $40 million equity raising
- The $40 million will be raised through a $28 million institutional placement and a $12 million share purchase plan
- In regards to the placement, approximately 5.4 million shares will be issued at $5.15 each
- Shares are expected to be issued on July 27 and be allocated on July 28
- Once the placement is completed, Audinate will offer eligible shareholders the ability to participate in a share purchase plan to raise a further $12 million
- However, this sum may be increased or scaled back subject to the company’s discretion
- Audinate will use the $40 million to speed-up its growth opportunities, strengthen its position in the global audio-visual market, and pursue potential acquisitions
- Company shares last traded for $5.69 on July 21
Technology company Audinate Group (AD8) has requested a trading halt after announcing a $40 million equity raising.
The $40 million will be raised through a $28 million institutional placement and a $12 million share purchase plan.
Placement
To raise the $28 million, approximately 5.4 million new fully paid shares will be issued at a price of $5.15 each.
This price represents a 9.5 per cent discount to the company’s last trading price of $5.69 on July 21.
Shares are expected to be issued on July 27 and be allocated on July 28.
Share purchase plan
Once the placement is completed, Audinate will offer eligible shareholders the ability to participate in a share purchase plan to raise a further $12 million.
However, this sum may be increased or scaled back subject to Audinate’s discretion.
Eligible shareholders will be able to purchase up to $30,000 worth of shares which will be priced lower than the placement price of $5.15 per share or have a two per cent discount to the five-day volume-weighted average price.
The share purchase plan will open on July 29, close on August 11, and shares will be allocated on August 17.
Audinate will use the money from both the placement and share purchase plan to speed-up its growth opportunities, strengthen its position in the global audio-visual market, and pursue potential mergers and acquisitions.
Company shares last traded for $5.69 on July 21.