A CAPITAL raising undertaken by wireless technology company
Wavenet International Limited closed fully subscribed last week, with the
company raising $A5,000,000 through a share placement.
The raising, which closed on Friday May 7, was the first
time Wavenet has undertaken a significant capital raising since listing on the
Australian Stock Exchange in March 2000, when it raised $A10 million in an
initial public offering.
There was also a small placement of $500,000 in November
2002.
Wavenet managing director John Thompson said funds raised
would provide additional working capital to support recently announced supply
contracts and forthcoming orders, and to develop new applications for the
technology.
“The raising gives the company a new lease of life to not
only execute on existing and new contracts, but to broaden our approach to the
market,” he said.
“A large number of institutional investors have decided the
stock does show good promise for appreciation over the next 12 to 18 months and
have elected to register.”
A prospectus indicated the share placement of 22,727,273 was
to be made in two tranches, with the shares to be placed at 22 cents a share,
representing a 25 per cent discount to the volume-weighted average trading
price for Wavenet for the year to date.
The maximum number of shares issued in the first tranche was
4,282,750, raising $942,205. The remaining 18,444,523 shares were issued in the
second tranche, representing $4,057,795, which was approved by the shareholders
at a meeting held at the end of April.
Some directors and senior management of Wavenet subscribed
for shares under the second tranche placement, which was also approved by
shareholders.
The lead manager for the issue is Cartesian Capital Pty Ltd.
Shares are being placed with investors of Cartesian Capital and Lonsdale
Securities Limited.
