- Communication services provider Norwood Systems (NOR) will raise $200,000 via a placement to support its new contract with Spark NZ
- Last month, Norwood extended its deal with Spark New Zealand to provide its World Voicemail software to Spark’s subscribers
- The placement will issue 5 million fully paid ordinary shares at $0.04 cents per share
- It’s expected to be settled on Valentines day
- Following today’s news, Norwood is up 4.26 per cent with shares trading for 4.9 cents each
Communication services provider Norwood Systems (NOR) will raise $200,000 through a placement of five million fully paid ordinary shares at $0.04 per share.
The company received firm commitments from Pinnacle Corporate Finance for the placement which will support its recent contract win.
On January 30 2020, Norwood signed an additional agreement with Spark New Zealand to provide Spark with a branded version of its World Voicemail software application.
World Voicemail is marketed as a next-generation voicemail subscription app which boasts advanced features compared to regular voicemails.
Spark is New Zealand’s largest digital services company. It provides mobile, broadband and digital service to millions of people and thousands of businesses.
Under the agreement, Spark is promoting “Spark Voicemail” to its subscribers as an alternative to its internally hosted voicemail services and encouraging them to sign up for the service.
The contract was originally announced in December 2018 and marked Norwood’s first contract with a telco operator
The new deal is expected to continue until mid this year and the revenue will then be shared between Spark and Norwood.
The settlement of the placement is expected to occur on February 14 2020.
Norwood is up 4.26 per cent with shares trading for 4.9 cents each at 12:44 pm AEDT.