Rewardle taps investors for $5m

Shares in Ruwan Weerasooriya’s Rewardle Holdings closed on a low today following news it was seeking to raise $5 million in a discounted placement.

In a statement today, the technology services provider said it would place about 15.2 million shares to insititutional and sophisticated investors at an issue price of 33 cents per share.

It knocked 10.3 per cent off the company’s share value today, with Rewardle closing at 34.5 cents per share.

However, the company said the strengthening of its financial position would assist it in achieving its objective of securing one or more strategic investors who can assist with the growth and development of the business, in addition to providing further capital.

“This placement positions the company to enhance its early mover advantage through the continued expansion of the Rewardle merchant and member network,” the company said.

“The funds will be used to maintain the company’s consistently accelerating network growth.”

The placement was heavily oversubscribed, with the company hinting at the possibility of a strategic investment following the outcome of discussions with unnamed investors.