- Data logistics company Kyckr (KYK) is set to raise $10 million to support its growth
- This money will be raised through an $8 million placement and $2 million share purchase plan
- The $10 million raised will be used to grow Kyckr’s international sales, expand its enterprise sales team, extend the network global partners, and undertake further product development
- Kyckr is down a slight two per cent and shares are trading for 9.8 cents each
Data logistics company Kyckr (KYK) is set to raise $10 million to support its growth.
This $10 million will be raised through an $8 million placement and $2 million share purchase plan.
Placement
Through the placement, approximately 100 million shares will be issued to institutional and sophisticated investors at a price of eight cents per share.
The placement will be completed in two phases, with phase one issuing 58,676,527 shares to raise approximately $4.7 million.
Shares in this phase are expected to settle on May 29 and be issued on June 1.
Phase two will consist of the remaining 41,323,473 shares being issued to raise $3.3 million.
This phase is subject to shareholder approval, which will be sought after at the extraordinary general meeting (EGM) that is scheduled for July 3.
Share purchase plan
Once the placement has been completed, Kyckr will open a share purchase plan to raise an additional $2 million.
More details regarding the share purchase plan will be announced soon but it is expected to open on June 3 and close on June 19.
Shares will then be allocated on June 26 and can begin trading on the ASX on June 29.
The money raised from both the placement and share purchase plan will be used to grow Kyckr’s international sales, expand its enterprise sales team, extend the network global partners, and undertake further product development.
“Our strategy is focused on building our enterprise channel and partnership model, and the additional funds will be used to ensurer Kyckr has the financial flexibility to pursue growth as the need for increased digitisation for Kyckr data increases, and will place us in a stronger financial position to take advantage of emerging opportunities ahead,” CEO Ian Henderson commented.
“We are grateful for the strong support from existing shareholders, and we are pleased to welcome new investors to the company,” he added.
Kyckr is down a slight two per cent and shares are trading for 9.8 cents each at 12:48 pm AEST.