- K2fly (K2F) has completed a share placement, receiving commitments to raise $7.25 million
- Twenty-five million fully paid ordinary shares will be issued at 29 cents each, representing a 10.8 per cent discount to the last closing price
- The funds will strengthen K2F’s balance sheet and will be applied to potential acquisitions, sales and marketing, product development and general working capital
- The company is pleased with the strong support from new institutional investors which it says is a testament to K2F’s strategy, products and team
- Settlement is expected on or around April 27
- Shares are 1.6 per cent lower trading at 31 cents each
K2fly (K2F) has completed a share placement, receiving “irrevocable” commitments to raise $7.25 million.
Institutional and sophisticated investors have backed the placement which includes the issue of 25 million fully paid ordinary shares at 29 cents each.
This price represents a 10.8 per cent discount to K2fly’s last closing price on April 15 and a 9 per cent discount to the 15-day volume-weighted average price of 31 cents.
By raising the money, K2F is hoping to strengthen its balance sheet, with plans to use the funds for potential acquisitions, sales and marketing, product development and general working capital.
The company says the strong support comes from investors who have specific experience and knowledge in the resources sector and recognise K2fly’s commercial opportunity.
CEO and Executive Director, Brian Miller said the strong support received, especially from new institutional investors, is indicative that K2F’s strategy, products and team is on the right track.
Settlement of the placement is expected to be completed on or around April 27.
Shares are 1.6 per cent lower trading at 31 cents each at 10:47 am AEST.