Monteray raises $5.5m for Norwood takeover

The company behind the reverse takeover of local cloud-based technology company Norwood Systems has raised $5.5 million in an oversubscribed share offer.

Monteray Mining Group, which is buying Norwood for about $8 million, raised the funds through the issue of 275 million shares at 2 cents each.

The company can now move towards completion of the transaction and will change its name to Norwood Systems Limited, adopting its target’s business model.

“The strong support from investors gives us significant encouragement,” Norwood chief executive Paul Ostergaard said.

“By achieving our maximum raising amount, we are well placed to execute the business objectives we have outlined, including marketing and business development of our Corona and Europa platforms, alongside further research and development.”

Norwood has developed a cloud-based technology that enables corporate to have their own private roaming service.

Once the acquisition is completed, Mr Ostergaard will become managing director of the new company.

The new company plans to be reinstated on the ASX on June 1.

Azure Capital was lead manager to the prospectus.

Meanwhile, xTV Networks, formerly Perth-based Intercept Minerals, announced it had raised $3 million in an oversubscribed placement.

The company, which creates custom online tv networks, plans to use the funds raised to expand into local and overseas markets.

“Interest from the Australian, New Zealand and Hong Kong markets has accelerated significantly due to recent corporate customer and distribution activity,” chief executive Joe Ward said.

“It makes sense for the company and the shareholders to take advantage of these immediate expansion opportunities.”

Foster Stockbroking acted as lead manager to the placement.