Cycliq raises $3.5m

Leederville-based cycling products developer Cycliq has completed a $2 million placement and plans to raise an additional $1.5 million through a rights issue, a week after the company’s two founders stepped down from their executive roles.  

Cycliq raised $2 million through the placement of 80 million new shares at 2.5 cents per share, a 30.6 per cent discount to the prevailing price.

Last week the founders stood down from their executive and board roles as part of a leadership restructure.

Following the placement Cycliq will raise up to an additional $1.5 million through an underwritten rights issue by Merchant Advisory part of Nedlands-based Merchant Group.

Shares issued under the rights issue will be issued at the same price as the placement, at 2.5 cents per share.

Cycliq is expanding its global sales and distribution network and its investment in a range of working capital and capital investment initiatives will be used to meet growth in global demand for its safety light and HD camera devices.  

At the time of writing Cycliq shares were 17.1 per cent lower at 2.9 cents per share.