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- FINEOS Corporation (FCL) has successfully completed an $85 million institutional placement despite only announcing it yesterday
- 20 million fully paid CHESS Depository Interests (CDIs) were issued at a price of $4.26 each
- Further, FINEOS is also undertaking a non-underwritten security purchase plan to raise up to $5 million
- Eligible securityholders will be able to subscribe for up to $30,000 worth of CDIs at the same as the placement
- FINEOS will use the money from both the placement and security purchase plan to help fund its acquisition of Limelight Health
- The company will acquire all of Limelight’s issued securities for a total of US$75 million (around A$105.2 million) to help it progress into the North American market
- FINEOS has ended the day 3.49 per cent in the green with shares trading for $4.75 each
FINEOS Corporation (FCL) has successfully completed an $85 million institutional placement despite only announcing it yesterday.
The software solutions company entered a trading halt yesterday in regards to the placement and the acquisition of Limelight Health.
FINEOS received strong interest from both new investors and existing securityholders and issued 20 million fully paid CHESS Depositary Interests (CDIs) at a price of $4.26 each.
This price represents a 7.2 per cent discount to the last closing price of $4.59 on August 11.
Those who bid for an amount less or equal to their pro-rata amount received their full bid.
The CDIs are expected to settle on August 14 and be allocated on August 17.
“The placement was strongly supported by our existing investors and we are pleased to welcome new high-quality institutional investors onto the register,” Founder and CEO Michael Kelly said.
“The successful completion of the placement signals a clear endorsement from the market for our overall business growth strategy and the acquisition of Limelight presents a strategic opportunity to drive further value for FINEOS CDI holders,” he added.
Further, FINEOS is also undertaking a non-underwritten security purchase plan to raise up to $5 million.
Eligible securityholders will be able to subscribe for up to $30,000 worth of CDIs at a price of $4.26 each, the same as the placement.
The plan will open on August 17 and close on September 4.
FINEOS will use the money from both the placement and security purchase plan to help fund its acquisition of Limelight Health.
The company will acquire all of Limelight’s issued securities for a total of US$75 million (around A$105.2 million).
Limelight provides cloud-based quoting, rating and underwriting software to North American-based ensurers and FINEOS said this acquisition will progress it into the North American market.
FINEOS has ended the day 3.49 per cent in the green with shares trading for $4.75 each in a $1.248 billion market cap.
