- NEXION Group (NNG) receives firm commitments to raise $2.75 million to support growth
- The company says it received strong demand for a placement, resulting in a significantly larger placement size of more than 17 million shares to be issued
- Shares will be offered at 16 cents each, and will include one attaching unlisted option for every two shares issued
- The raise follows the company’s acquisition of Blue Sky Telecom which took a large amount of its cash balance, it says with this placement it can replenish its working capital
- Shares ended trade 5.5 per cent lower at 17 cents
NEXION Group (NNG) has received firm commitments to raise $2.75 million to support growth.
The enterprise ICT solutions provider said it received strong demand for a placement, which has resulted in a significantly larger placement size than anticipated with more than 17 million shares to be issued at 16 cents each.
Additionally, directors of the company have committed to participate in the placement for a total amount of $100,000, subject to shareholder approval.
Also pending approval from shareholders, subscribers to the placement will be issued one attaching unlisted option for every two shares issued, exercisable at 30 cents and expiring after three years.
NNG plans to hold a shareholder meeting as soon as practicable to seek the necessary approvals.
The capital raise follows the company’s acquisition of Blue Sky Telecom, which took a large amount of its cash balance which was raised at its initial public offering earlier this year.
While the acquisition added $3.4 million in annual recurring revenue, the company said the funds from this capital raise will replenish its working capital.
Additionally, NEXION has experienced a significant increase in sales over the previous three quarters and said this placement will allow its growth trajectory to continue.
With the additional funds, the company is well capitalised and is working towards achieving a positive earnings before interest, tax, depreciation and amortisation (EBITDA) position by the end of this financial year.
Company shares were 5.5 per cent lower at 17 cents at the end of trade.