- Flexiroam (FRX) raises $2.75 million to accelerate its growth initiatives and capitalise on the expansion into the global Internet of Things (IoT) connectivity market
- Investors made firm commitments for the placement that comprised 57,291,670 shares offered at 4.8 cents each
- With the funds, Flexiroam plans to continue development of its core features for its IoT clients in new verticals, and fund engineering resources to support product development
- Following a string of new deals CEO Marc Barnett says the placement comes at a critical point in the company’s growth journey
- Company shares resumed trade today and were 6.9 per cent higher at 5.4 cents
Digital communications specialist Flexiroam (FRX) has raised $2.75 million to accelerate its growth initiatives and capitalise on an expansion into the global Internet of Things (IoT) connectivity market.
Emerging from a trading halt, the company announced new and existing professional and sophisticated investors had supported a placement that comprised 57,291,670 shares offered at 4.8 cents each.
The company’s management team also participated in the raise, contributing 40 per cent of the funds raised.
The placement was undertaken at a 20 per cent premium to the raise completed in October, and a 2 per cent premium to the 20-day volume weighted average share price.
With the fresh capital, Flexiroam plans to continue development of its core features for its IoT clients in new verticals, and also fund engineering resources to support product development.
Following a string of new deals across the company’s operations, CEO Marc Barnett said the placement comes at a critical point in its growth.
“The placement ensures we are well funded to progress several strategic growth initiatives across key IoT verticals, including the development of core IoT features and additional partnerships to penetrate global markets,” he said.
“Importantly, we continue to expand our pipeline of bespoke IoT solutions and today’s funding round leaves us well placed to close out highly scalable IoT connectivity deals in global markets.”
Settlement is due to occur today, with the new shares being issued around February 15.
Company shares were trading 6.9 per cent higher at 5.4 cents at 11:17am AEDT.