- Investment business Thorney Technologies (TEK) has received firm commitments to undertake a $37 million capital raise
- These funds will be raised through a $27 million placement and a $10 million non-renounceable entitlement offer
- Under the placement, more than 77 million shares will be issued to institutional, professional and sophisticated investors at 35 cents
- The entitlement offer will give eligible shareholders the opportunity to subscribe for one new share for every nine held
- Thorney will use the funds to invest in technology-related companies, increase its working capital, and pay costs associated with the placement and offer
- Company shares are up 5.88 per cent at market close, trading for 36 cents each
Thorney Technologies (TEK) has received firm commitments to undertake a $37 million capital raise.
These funds will be raised through a $27 million placement and a $10 million non-renounceable entitlement offer.
Placement
To raise the $27 million, more than 77 million shares will be issued to institutional, professional and sophisticated investors at 35 cents.
The placement will be undertaken in two phases with phase one issuing 37,142,858 new shares to raise roughly $13 million.
Phase two, which is subject to shareholder approval, will issue 40 million new shares to raise the remaining $14 million.
“We are delighted with the support shown by new and existing investors, with bids received well in excess of amounts raised under the placement,” Chairman Alex Waislitz said.
Entitlement offer
The remaining $10 million will be raised through a non-underwritten non-renounceable entitlement offer.
Eligible shareholders will be able to subscribe for one new share for every nine held.
Up to 28,587,247 new shares will be issued at 35 cents, representing an 18 per cent discount to Thorney’s unaudited after-tax net tangible assets (NTA) price, set at 42.8 cents.
The entitlement offer will open on November 16 and close on November 30. Shares will settle on on December 1 and be issued on December 7.
Thorney will use the funds from the capital raise to invest in technology-related companies both in Australia and overseas, increase its working capital, and pay costs associated with the placement and offer.
Company shares are up 5.88 per cent at market close, trading for 36 cents each in a $87.47 million market cap.