- Network services provider Swoop (SWP) successfully completes its oversubscribed $41 million placement
- The funds were raised through the issue of approximately 22 million shares to institutional, sophisticated and professional investors at $1.85
- Swoop will now undertake a share purchase plan to raise a further $5 million with participants able to subscribe for up to $10,000 worth of shares
- The money from both the placement and SPP will be used to fund to company’s acquisition of connectivity provider, Countrytell Holdings
- Swoop ends the day 8.61 per cent in the green with shares trading at $2.27
Network services provider Swoop (SWP) has successfully completed its oversubscribed $41 million placement.
The company entered a trading halt on October 14, stating it was looking to raise $41 million via an underwritten placement.
The funds were raised through the issue of approximately 22 million shares to institutional, sophisticated and professional investors at $1.85.
Swoop now intends to undertake a share purchase plan (SPP) to raise up to a further $5 million.
Eligible shareholders will be able to subscribe for up to $10,000 worth of shares without incurring any brokerage or transaction costs.
The SPP will be capped at $5 million and Swoop has the right to scale back applications at its discretion in the event that applications are in excess.
The plan is expected to open tomorrow, October 19, at which time further details will be released.
Swoop will use the money from both the placement and SPP to fund the acquisition of connectivity provider, Countrytell Holdings.
Countrytell operates a fixed wireless network consisting of over 30 towers, one of Newcastle’s largest data centres and a CBD dark fibre network.
The total purchase price for the acquisition is $4.2 million and consists of $2.1 million in cash and $2.1 million worth of Swoop shares.
Swoop has ended the day 8.61 per cent in the green with shares trading at $2.27 in a $388.5 million market cap.