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- Software company Intiger Group (IAM) has raised approximately $125,000 after completing a sophisticated investor placement
- The company received binding commitments for a placement of 250 million shares, which it plans to issue around June 12
- Intiger Group will issue the shares at 0.05 cents each, a 50 per cent discount to its June 5 price
- The company intends to use the funds for general working capital, and for evaluating potential acquisition opportunities
- Intiger Group shares are grey today, trading for 0.1 cents per share
Software company Intiger Group (IAM) has raised approximately $125,000 after completing a sophisticated investor placement.
The company announced that it received binding commitments and sophisticated investors for a placement of 250 million shares.
Intiger Group will issue those shares at 0.05 cents per share. This price is a 50 per cent discount on the company’s last share price on Friday, June 5, 2020.
Intiger Group expects to issue the 250 million shares from the placement on or around Friday, June 12, 2020.
Investors under the placement have entered into a voluntary escrow agreement. The escrow agreement term will be either twelve months from the settlement of placement shares, or until a cleansing prospectus is issued. The first of these two deadlines to occur will become the escrow term.
The company plans to use the funds from the placement as general working capital. The proceeds will also go towards evaluating potential opportunities for future acquisitions.
Intiger Group has stated that while it will investigate opportunities, there is no assurance that the company will enter any binding agreements for acquisitions.
Perth-based stockbroker, Euroz Securities, provided services as the lead manager of the placement. Euroz will receive an equity-raising fee, equalling 6.0 per cent of the total gross amount raised in the placement.
This would result in a placement fee of approximately $7500 for Euroz Securities.
Intiger Group plans to pay the six per cent equity-raising fee in shares. However, this placement fee will be subject to the approval of the company’s shareholders. If Intiger Group’s shareholders do not give their approval to the placement fee shares, the company will pay the fee in cash instead.
In other news, the company, along with convertible note-holders, have agreed to extend the redemption date of the convertible note. The extension has pushed the date back to September 30, 2020.
Intiger Group shares are grey today, trading for 0.1 cents per share at 10:49 am AEST.
