- Software distribution company Cellnet Group (CLT) has announced an entitlement offer to strengthen its balance sheet and enhance its liquidity
- Under the entitlement offer, eligible shareholders will have the opportunity to subscribe for 2.7 new shares for every one share held
- More than 169 million shares will be offered at a price of 0.3 cents each
- Cellnet has also announced that for the month of April it received $1.9 million more than what was expected at the beginning of the month
- This extra amount will help reduce Cellnet’s funding requirements and improve its access to working capital funding
- Pending a further announcement, Cellnet has entered voluntary suspension, with shares last trading for 11 cents each on April 28
Software distribution company Cellnet Group (CLT) has announced an entitlement offer to strengthen its balance sheet and enhance its liquidity.
These funding initiatives will also be used to position the company for recovery and growth post COVID-19, and general working capital.
Entitlement Offer
Under the entitlement offer, eligible shareholders will have the opportunity to subscribe for 2.7 new shares for every one share held.
Approximately 169,006,760 million new shares will be offered and priced a 0.3 cents each. This represents a significant discount to the closing price on April 30, when the entitlement offer was announced.
On this day shares closed at 11 cents each.
Approximately $5.07 million will be raised, before costs, and this will be reached through a $2.73 million institutional entitlement offer and a $2.34 million retail entitlement offer.
“I am grateful for the support and faith our shareholder, staff, customers and suppliers have shown Cellnet through this unprecedented and extremely challenging time,” CEO Alan Sparks commented.
“This capital injection strengthens the capital base of Cellnet to withstand further shocks and be able to continue to grow as we emerge from the pandemic and economic aftershocks,” he added.
Cellnet has also announced that for the month of April it received $1.9 million more than what was expected at the beginning of the month.
This extra amount will help reduce Cellnet’s funding requirements and improve its access to working capital funding.
Prior to COVID-19, Cellnet had already begun taking steps to re-positions itself for growth.
These positions include reducing overheard costs, upgrading its supply chain capabilities, diversifying its exposure, and transitioning into the e-commerce market.
Pending a further announcement, Cellnet has entered voluntary suspension. Shares last traded for 11 cents each on April 28.