11/10/2007 - 13:02

Ausron completes $25m capital raising, plans $7.5m more

11/10/2007 - 13:02

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West Perth-based Ausron Ltd, which plans to become a financial services technology provider under the name Rubik Financial Ltd, has completed a capital raising of $25 million, subject to shareholder approval.

West Perth-based Ausron Ltd, which plans to become a financial services technology provider under the name Rubik Financial Ltd, has completed a capital raising of $25 million, subject to shareholder approval.

The comapny originally intended to raise $20 million via a private placement and $5 million through a public offer.

However, according to an Ausron announcement, the company received sufficient investor support for it to raise the size of the placement to $25 million, which also closed oversubscribed.

The company will consider accepting oversubscriptions of $2.5 million from its planned public offer.

These additional funds, of up to $7.5 million more than previously announced, will initially be applied to reduce the company's reliance on debt in executing its acquisition plans.

 

 

The full text of a company announcement is pasted below

The Directors of Ausron Limited ("Ausron" or "the Company") (to be renamed Rubik Financial Limited) have previously announced an intention to raise equity via two components:

  • A private placement to sophisticated investors of approximately A$20 million; plus
  • A public offer to existing and new shareholders of approximately A$5 million.

Private Placement

The Directors are pleased to announce the completion of a private placement of 125 million new fully paid ordinary shares at a post-consolidation issue price of A$0.20 per share (corresponding to a pre-consolidation share price of A$0.04) to raise A$25 million ("Placement"). The Placement is conditional upon shareholder approval and the proposed 1 for 5 share consolidation.

The proceeds of the Placement will be applied to the acquisition of Swift Call Pty Ltd, to fund further acquisitions, and for working capital purposes.

The Company's roadshow to sophisticated and professional investors was very well received and the Company received investor demand well in excess of the proposed placement size. Therefore, the Company decided to increase the Placement amount from the original target of $20 million to $25 million. Nevertheless, the Placement closed significantly oversubscribed.

We enclose for release a presentation describing the Company's business strategy and the proposed capital raising containing information disclosed to potential investors during the roadshow.

Public Offer

During the course of the roadshow, the Company also received significant interest from brokers in the proposed public offer. As a result, the Company is considering accepting oversubscriptions of up to $2.5 million beyond the originally targeted $5 million raising amount.

These additional funds, of up to $7.5 million more than previously announced, will initially be applied to reduce the Company's reliance on debt in executing its acquisition plans.

Indicative Timetable of Key Events

  • Notice of Meeting (AGM) 29 October 2007
  • Prospectus Lodged 15 November 2007
  • Annual General Meeting 29 November 2007
  • Prospectus Close 14 December 2007

Placement shares will be issued to sophisticated and professional investors pursuant to Section 708 of the Corporations Act 2001 (the "Act").

Shareholder approval will be required for the Placement in accordance with ASX Listing Rule 7.1 (Shareholder Approval). It is proposed that Shareholder Approval will be sought at a general meeting of the Company's shareholders to be held on or about 29 November 2007.

The Company gives notice pursuant to Section 708A(5) of the Corporations Act:

  • The Company issued the Shares without disclosure to investors under Part 6D.2 of the Act;
  • As at the date of this Notice, the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company, and section 674 of the Act; and
  • As at the date of this Notice, there is no information:
    • That has been excluded from a continuous disclosure notice in accordance with the ASX Listing Rules; and
    • That investors and their professional advisers would reasonably require for the purpose of making an informed assessment of:
      • The assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or
      • The rights and liabilities attaching to the Shares.
  • STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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