- Internet-of-Things technology company X2M Connect (X2M) launches an entitlement offer to raise $3.97 million
- The one-for-three entitlement offer will issue up to 46.7 million shares at 8.5 cents each which marks a generous 39 per cent discount to the last closing price
- X2M Connect is using the money to increase sales and marketing, grow its platform, hardware and prototypes, and for general working capital
- Following a significant 169 per cent increase in unaudited revenue for the June quarter and 82 per cent for FY22 as a whole, the company says it’s poised to continue growing
- X2M shares are currently in a trading halt and last traded at 14 cents each on July 22
Internet-of-Things technology company X2M Connect (X2M) has launched an entitlement offer to raise nearly $4 million.
The one-for-three accelerated non-renounceable entitlement offer will be made up of an institutional and retail component and will involve the issue of up to 46.7 million new shares.
Shares will be priced at 8.5 cents which represents a hefty 39 per cent discount to the company’s last close on Friday, July 22.
X2M shareholders will receive one free-attaching option for every two new X2M shares they take up in the entitlement offer. Each option may be exercised for 16 cents each until August 31, 2024.
The company said the $3.97 million will be used to increase sales and marketing, enhance its platform, hardware and prototypes, and for general working capital.
The tech stock believes the entitlement offer will provide “increased exposure to X2M’s growth story” following a 169 per cent increase in unaudited revenues of $4.3 million for the June quarter.
The Q4 increase took the company’s unaudited FY22 revenues to $10.4 million which marks an 82 per cent increase from the prior corresponding period.
“We are thrilled with the revenue growth achieved by the X2M business over the course of its 2022 financial year,” CEO Mohan Jesudason said.
“It clearly demonstrates our ability to build scale in our addressable markets by both deepening relationships with existing clients and onboarding new ones.
“Looking ahead, a key focus will be to realise the huge upside potential still available in our current round of growth initiatives.”
The institutional component of the entitlement offer is open from today and will close tomorrow, July 26.
The retail offer will be open from July 29 until August 17.
X2M shares are currently in a trading halt while the institutional offer is being completed. Shares last traded at 14 cents on July 22.