- Damstra Holdings (DTC) expects to raise $20 million following a share placement and entitlement offer to support growth in sales
- The placement and institutional component of the entitlement offer have been completed, together raising $13.8 million at 34 cents per share to be issued on December 10
- The fully underwritten retail component of the entitlement offer will seek to raise a further $6.3 million which is set to open between December 7 and 16
- Damstra plans to put the funds towards growth in sales capability and resources, its TIKS deferred consideration payment and further development in its Protection Platform
- Shares have ended the day trading 8.16 per cent lower at 36 cents
Damstra Holdings (DTC) is expecting to raise $20 million following a share placement and entitlement offer.
The enterprise protection software company is undertaking the raise to support growth in sales capability and resources, specifically in the North American market.
Additionally, the funds will go towards the TIKS deferred consideration payment, and to further invest in development of DTC’s Enterprise Protection Platform.
The placement and institutional component of the entitlement offer comprised shares at 34 cents each, with both reportedly well supported by existing institutional shareholders and new institutional investors.
Under the placement, the company received subscriptions for 29.4 million shares, totalling $10 million and the institutional entitlement offer raised $3.8 million.
The new shares from both raises will rank equally with existing fully paid ordinary shares and are expected to be issued and begin trading on December 10.
The fully underwritten retail component of the entitlement offer aims to raise a further $6.3 million with eligible retail shareholders invited to subscribe for shares at the same offer price of 34 cents. The offer period will be between December 7 and December 16.
Moreover, eligible retail shareholders who have subscribed for all of their entitlement will be able to apply for a number of additional new shares equal to a maximum of 50 per cent of their full entitlement.
Shares dropped 8.16 per cent to trade at 36 cents at market close.