- Electronic lock creator TZ Limited (TZL) has locked in the remaining funds from a November share purchase plan
- TZ planned to raise just over $2 million in November, but the purchase plan came up $1.3 million short
- Lead manager Delcor Advisory Group, however, has now successfully placed the remaining shares
- This means TZ will pocket the full amount from the capital raise
- The funds will be used to support TZ’s U.S. business and operations
- The company’s shares have sunk today on the news of further dilution, currently down 22 per cent and worth 14 cents each
Electronic lock creator TZ Limited (TZL) has secured the remaining $1.36 million from its $2.2 million share purchase plan announced in November last year.
The company initially planned to raise the $2.2 million by giving investors the opportunity to subscribe for up to $30,000 new shares at 10.5 cents each — a discount of almost 20 per cent on the five-day volume-weighted average price when the capital raise was announced.
However, by the time the share purchase plan closed just before Christmas, TZ had only received just over $850,000 worth of applications.
Delcor Advisory Group, who was appointed lead manager for the purchase plan, then had the responsibility of placing the remaining shares to help TZ secure the full amount of funding.
In an aftermarket announcement yesterday, TZ told shareholders Delcor has successfully placed the shortfall of shares from the purchase plan to raise the remaining cash. TZ said it should receive the funds from the placement as soon as Thursday, January 23, with the shares being issued a day later.
In November, the company said the funds will help resource its U.S. sales force — particularly in the country’s educational sector — and allow TZ to keep building its software-as-a-service (SaaS) offerings to develop its annuity business.
Chairman Graham Lenzer said the company has gone through a “major transition” over the last few years as it works to build the right structure and business model.
“With a focus on initiatives that can scale the business and enable the potential for favourable returns to shareholders, the share purchase plan funds will do much to support this endeavour and help concentrate the sales effort on tangible short to medium term outcomes,” Graham said.
Importantly, Graham told shareholders that the company believes profitability is “close”.
The capital raising completion comes just a week after TZ’s share price saw an 80 per cent spike on the back of a smart locker roll-out deal with Bank of America.
Today, however, the company’s shares have sunk on the news of further dilution from the shortfall placement. While TZ is set to add some cash to its balance sheet, shares at trading 22.22 per cent lower leading up to midday AEDT.
Currently, TZ shares are worth 14 cents each. The company has an $11.02 million market cap.