Commoditel to raise $475,000 in rights issue

Perth-based communications company Commoditel Ltd aims to raise $475,000 in a rights issue to shareholders, with the money to go towards the company's working capital reserves.

The company will offer 47.5 million shares at 1 cent each on the basis of one share for every 10 shares held, together with one free attaching option for every two shares allotted and issued.

According to a statement from company chairman Charles Morgan, Commoditel will pursue the strategy of acquiring what it calls "orphan" customer bases and utilising traditional distribution channels to capitalise on them.

The company's earnings before interest, tax, depreciation and amortisation for the June quarter were $252,757. Its managing director is David Sweet, and is also assisted by Roger Steinepreis in his capacity as a non-executive director.

The offer will open on August 21 and close on September 4.