- Intelligent Monitoring Group (IMB) completes the institutional component of its entitlement offer and raises $5 million
- last week, IMB announced it would be undertaking a $10 million entitlement offer to fund the acquisition of Mammoth Technology
- The institutional entitlement offer was strongly supported by existing shareholder Black Crane Asia Pacific Opportunities Fund that subscribed for $4.7 million
- To raise the remaining $5 million, IMB will be undertaking a retail entitlement offer that is expected to open on May 27
- IMB ends the day 18.2 per cent in the red with shares trading at 13.5 cents
Intelligent Monitoring Group (IMB) has completed the institutional component of its entitlement offer and raised $5 million.
On May 20, IMB announced it would be undertaking a one for one non-renounceable entitlement offer to raise roughly $10 million to fund the acquisition of Mammoth Technology.
The institutional entitlement offer was strongly supported by existing shareholder Black Crane Asia Pacific Opportunities Fund, an entity controlled by IMB Chairman Peter Kennan.
Black Crane subscribed for roughly $4.7 million.
Shares were priced at 15 cents, representing a 21.8 per cent discount to IMB’s give-day volume-weighted average price.
To raise the remaining $5 million, IMB will be undertaking a retail entitlement offer that is expected to open on May 27.
Eligible shareholders will have the ability to subscribe for additional shares in excess of their entitlements that will be allocated in a retail shortfall facility.
Bell Potter Securities and Morgans Corporate have agreed to underwrite $2.7 million of the retail entitlement offer, resulting in IMB being able to raise up to $7.7 million.
“Since recapitalisation, the company has been focused on putting in place its new core operating platform, assessing strategic acquisitions and looking at how to enhance its growth profile further,” Vice Chairman and Managing Director Dennison Hambling said.
“Whilst we are disappointed to be raising at the current share price levels, we feel that the addition of Mammoth to the business should improve the growth profile of the business over our three-year plan period and ultimately its value is such that it still made sense to proceed.”
IMB has ended the day 18.2 per cent in the red with shares trading at 13.5 cents.