Perth-based Amcom Telecommunications has raised $25 million after completing plans to clean up its capital structure outlined in October last year.
Perth-based Amcom Telecommunications has raised $25 million after completing plans to clean up its capital structure outlined in October last year.
The telco networks company said the initiatives involved the cancellation of 81 million options that were due to expire at the end of last year for a cancellation price of 4 cents per option.
In addition, the underwriting by Euroz Securities of the exercise of 150 million options at a price of 17 cents per option also contributed to the transaction.
The company received option exercise notices in excess of the underwriting commitment and therefore there was no underwriting shortfall.
Amcom said at completion of the transaction which raised $25 million, net of option cancellation and transaction costs, the company will be in a net cash position.
Amcom chairman Tony Grist said he was very pleased with the success of the initiatives.
"Amcom's capital structure now has certainty and the funds raised will add further strength and flexibility to the Company's balance sheet, enabling it to actively pursue further growth initiatives," Mr Grist said.
Total ordinary shares on issue are now 717 million and the company has no options on issue.
Full announcement below:
SUCCESSFUL COMPLETION OF CAPITAL MANAGEMENT INITIATIVES
Amcom Telecommunications Limited ("Amcom") (ASX: AMM) announces that it has successfully completed the capital management initiatives announced on 7 October 2009.
The initiatives involved the cancellation of 81 million Options for a cancellation price of 4 cents per Option and the underwriting by Euroz Securities Limited of the exercise of 150 million Options at a price of 17 cents per Option.
The Company has received Option exercise notices in excess of the underwriting commitment and therefore there was no underwriting shortfall. Through the capital management initiatives, the Company has raised $25 million, net of the Option cancellation and transaction costs.
At completion, the Company will be in a net cash position.
Total ordinary shares on issue are now 717 million and the Company has no Options on issue.
"We are very pleased with the success of these initiatives. Amcom's capital structure now has certainty and the funds raised will add further strength and flexibility to the Company's balance sheet, enabling it to actively pursue further growth initiatives" said Chairman Tony Grist.
