Grange backs Norwood raising

Perth-based telecommunications company Norwood Systems has tapped the market for nearly $2.1 million to fund ongoing development and commercialisation of its products.

Norwood raised the $2.07 million by way of a two-for-15 rights issue priced at 1.6 cents a share, which has been fully underwritten by lead manager Grange Capital Partners and sub-underwritten by Norwood’s directors.

The price represents a 29 per cent discount to Norwood’s 10-day volume-weighted average price.

The proceeds of the raising will be used to fund ongoing marketing and sales activities, as well as product development.

“Norwood has generated significant sales momentum for 2017, with both distribution via the loyalty sector in the fintech space and direct corporate sales showing strong starts,” Norwood managing director Paul Ostergaard said.

“This fully underwritten rights issue will allow all shareholders to participate in continuing this momentum, whilst providing the required certainty for the company and its stakeholders by way of it being fully underwritten.”

Norwood shares were 13.6 per cent lower to 1.9 cents each at the close.