- Software developer Corum Group (COO) has closed its non-renounceable pro-rata entitlement offer, after raising approximately $2.94 million
- The company originally hoped to raise up to $5.6 million through the issue of over 134 million new ordinary shares
- However, Corum only received acceptances for just over 70 million new shares, approximately 52.3 per cent of available entitlements
- The company has conducted a separate placement of 62.7 million new shares, in order to raise an extra $2.8 million
- Corum Group closed four per cent in the red for 4.8 cents per share
Software developer Corum Group (COO) has closed its non-renounceable pro-rata entitlement offer, after raising approximately $2.94 million.
The company announced plans to undertake an entitlement offer earlier this month. At the time, Corum stated that the funds would be used to partly fund the company’s recent acquisition of PharmX, as well as working capital, and offer and transaction costs.
The company conducted the entitlement offer in hopes of raising up to $5.6 million, by issuing up to 134,189,197 new ordinary shares.
However, Corum only received acceptances for 70,162,594 of new shares in the company. The applications represented approximately 52.3 per cent of total entitlements available for subscription under the offer. This left a little over 64 million new shares in Corum Group unissued.
The company has also undertaken a placement of 62,760,626 new shares, in order to raise $2.8 million before costs. That placement enjoyed strong demand from institutional, family office, and private investors, the majority of which will become new shareholders in Corum Group.
The underwriter of the offer, PAC Partners, has subscribed for the company’s shortfall shares. This was possible since the amount subscribed under the offer was less than the $3 million in underwritten shares.
Corum Group’s Chairman, Nick England, commented on the participation and results of the company’s entitlement offer.
“I would like to thank shareholders for their strong support of the offer, and take this opportunity to welcome new investors to Corum and thank them for their support,” he said.
Corum Group closed 4 per cent in the red, to trade for 4.8 cents per share.