- Cybersecurity business Family Zone (FZO) entered a trading halt this morning as it gears up for a capital raise
- Until it’s ready to announce the details, FZO will keep its shares paused until Monday, October 26
- However, news the company is asking for fresh capital may come as a surprise to shareholders
- Just a few weeks ago, Family Zone confirmed it had $8.7 million in available funding and was “well placed to continue forward with its business growth plan”
- As a result, shareholders will have to wait until after the weekend to find out just what the cash injection will help Family Zone accomplish
- FZO shares last traded for 46 cents on October 21
Family Zone (FZO) entered a trading halt this morning as it gears up for a capital raise.
Until it’s ready to announce the details, FZO will keep its shares paused until Monday, October 26. As a result, it’s unclear at this stage what the company will put the funding towards, or even how much it intends to raise.
Family Zone’s latest campaign follows a $10 million capital raising venture, announced back in April. Under the raise — constructed as a two-tranche placement — FZO issued over 83 million shares at 12 cents a pop.
Existing, institutional, and high net worth investors alike chipped in to support the raise, bringing in $10 million to drive the company’s U.S. growth.
However, news of another equity raise may come as a surprise to shareholders.
In its latest market update, released in early October, Family Zone told investors it had $8.7 million in available funding. Coupled with an $880,000 tax refund — expected to hit the company’s accounts this month — FZO confirmed it was “well placed to continue forward with its business growth plan.”
As a result, shareholders will have to wait until after the weekend to find out just what the cash injection will help Family Zone accomplish.
FZO shares last traded for 46 cents on October 21.