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Norwood Systems (ASX:NOR) to raise $640,000 for telco services platforms

ASX News, Telecommunication
ASX:NOR      MCAP $15.72M
06 May 2022 12:25 (AEDT)

Norwood Systems (NOR) is aiming to raise about $640,000 through a fully underwritten entitlement offer to expand two of its core telco services platforms.

The funds will be directed towards business development, research and development, and general working capital.

One new share will be offered for every seven held at a price of 1.5 cents each. This represents a 25 per cent premium to the company’s last closing price.

Each new share will receive one attaching option, exercisable at 2.4 cents and expiring at the end of next year.

Managing Director Paul Ostergaard said the capital raise will ensure the company is well funded to capitalise on projects.

“The company has recently proven that it has the ability secure contracts with large, well-known international information technology companies and it is working intensely to achieve successful delivery of the two recently won projects, in particular,” he said.

“Additionally, the team at Norwood is looking forward very much to the near-term beta release of Norwood’s Aïda platform, which will add significant new options for telco partners in how they handle voice calls on their networks.”

Shares were trading 4 per cent higher at 1.3 cents each at 11:56 am AEST.

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