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- Workplace management solutions provider Damstra (DTC) entered a trading halt ahead of a $20 million equity raise
- The company aims to raise $10 million through an institutional placement and $10 million through an institutional and retail entitlement offer
- Damstra is using the money to support sales growth with a particular focus on the North American market
- Funds are also being put towards a deferred payment for the acquisition of TIKS Solution and to invest in Damstra’s platform
- Damstra expects to come out of the halt by Monday, December 6 and shares last traded at 40 cents on December 1
Damstra (DTC) has entered a trading halt ahead of announcing an institutional placement and non-renounceable entitlement offer.
The integrated workplace management solutions provider launched the $20 million capital raise which will reportedly be used to support sales growth, especially in the North American market.
Additionally, the funds will support a deferred payment for the recently completed acquisition of TIKS Solution, as well as to further invest in the development of Damstra’s Enterprise Protection Platform.
Broken down, the fully-underwritten placement will seek to raise $10 million through the issue of 29.4 million shares at 34 cents each. The issue price represents a 15 per cent discount to the last close price on December 1 of 40 cents.
The placement is expected to settle on December 9.
The fully-underwritten accelerated pro-rata entitlement offer will raise $10 million at the same price as the placement.
The entitlement offer will have an institutional and retail component with the institutional portion to settle on December 9 and shares under the retail offer expected to be issued on December 23.
Damstra expects to come out of the halt by Monday, December 6 and shares last traded at 40 cents on December 1.
