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Nearmap (ASX:NEA) opens $20 million share purchase plan

Technology
ASX:NEA
17 September 2020 11:45 (AEST)

Digital mapping system Nearmap (NEA) looks set to raise even more capital after it opened its share purchase plan (SPP) to eligible shareholders.

Nearmap has already raised $72.1 million via a recent institutional placement to investors last week.

The company hopes the SPP will bring in an additional $20 million in capital, which it plans to put towards accelerating its growth strategy.

It also plans to invest the funds into the company’s next-generation camera system roll-out.

Under the plan, eligible shareholders are invited to apply for up to $30,000 in new shares — which are priced at $2.77 each.

That price represents a 4.2 per cent discount to Nearmap’s closing price of $2.89 on September 9, but shares are now trading well below that price.

Nearmap said the SPP isn’t underwritten and at this stage is expected to close at the end of day on Monday, October 5.

New shares will then be issued on Monday, October 12, with the shares able to be traded from Tuesday, October 13.

Shares in NEA are trading down a slight 1.26 per cent in the red, for $2.43 each.

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