- Family Zone (FZO) receives binding commitments to undertake a $114.1 million placement and institutional entitlement offer
- A total of 207.4 million new fully paid ordinary shares will now be issued to sophisticated and institutional investors at 55 cents
- Family Zone will also undertake a retail entitlement offer to raise a further $32.3 million
- The company will use the money to fund the acquisition of online safety business Smoothwall
- Shares in Family Zone are up a healthy 14.8 per cent on the market and are trading at 67.5 cents at 12:38 pm AEST
Family Zone (FZO) has received binding commitments to undertake a $114.1 million placement and institutional entitlement offer.
To raise the funds, 207.4 million new fully-paid ordinary shares will be issued to sophisticated and institutional investors at 55 cents apiece.
This price represents an 8.3 per cent discount to Family Zone’s last trading price of 60 cents on July 30.
Under the entitlement offer, eligible shareholders will be able to subscribe for five new shares for every 16 held as of August 9.
Family Zone will also undertake a retail entitlement offer to raise a further $32.3 million.
The placement and entitlement offers form part of the company’s $146.4 million capital raising to acquire online safety business Smoothwall.
Based in the United Kingdom, Smoothwall is one of the world’s leading providers of digital and safeguarding services.
It launched in August 2000 as a firewall platform and since then has developed into a broad suite of digital safety solutions aimed at the kindergarten to year 12 market.
It services more than 12,400 schools and protects more than six million students.
Shares in Family Zone were up a healthy 14.8 per cent on the market, trading at 67.5 cents at 12:38 pm AEST.