- Software services provider Energy One (EOL) is raising up to $7.5 million through a placement and partially underwritten rights issue
- The placement will raise $5.5 million by issuing new shares to investors at $4.50 each and the remaining $2 million will be raised under the non-renounceable rights issue
- Energy One is mainly using the money to settle deferred payments as part of its acquisitions of Egssis NV and CQ Energy Group
- Any leftover funds will be used for working capital to provide balance sheet support
- EOL shares last traded at $5.20 each on September 14
Energy One (EOL) is looking to raise up to $7.5 million through an institutional placement and partially underwritten rights issue.
The company, who supplies software and services to international wholesale energy trading markets, entered a trading halt this morning which flagged its intention to raise some fresh capital.
The first component is the non-underwritten institutional placement which will seek to raise $5.5 million.
New shares under the placement will be issued to sophisticated and professional investors at $4.50 each which marks a 13.5 per cent discount to the last traded price and a 12.8 discount to the 15-day volume-weighted average price.
The remaining $2 million will be raised under a non-renounceable one-for-62 rights issue which is partially underwritten by PAC Partners Securities who is acting as lead manager and corporate advisor.
Energy One will use the money to settle deferred payments to the sellers of Egssis NV and CQ Energy Group.
The company acquired Belgium-based software solutions company Egssis NV in December 2021. The total amount payable was €4.25 million (A$6.63 million at the time) and the company was given 18 months to pay the total amount.
In April this year, Energy One completed the purchase of CQ Energy which is a group of companies and unit trusts in Australia.
This acquisition totalled $36 million in cash and equity and the company was given 12 months to pay the total.
The leftover funds from the capital raise will cover transaction costs and working capital to provide balance sheet support.
EOL shares last traded at $5.20 each on September 14.