WEST Perth wireless technology developer Cape Range Wireless has announced an issue of low-priced shares to make up for a $4.5 million capital shortfall after merging with US based Arcadian Wireless in July.
Cape Range expected $7.9 million from a non-renounceable rights issue but, according to Cape Range chairman Ron Wise, delays in the merger meant Cape Range was unable to offer shares to Arcadian shareholders. The issue raised only $3.4 million.
Under the cut-price issue, shareholders will now be offered shares at five cents each, with half payable on application and half in three months. The company expects to raise $4 million initially.
Mr Wise said the current state of equity markets and the downturn in the technology sector meant there was little alternative.
“The issue is structured so that shareholders only have to find half a cent per share they own to avoid dilution,” he said.
“We’ve done it that way to make it attractive to small shareholders so they don’t suffer dilution while we enhance our commercial achievements.”
The company plans to use the funds to move from the rural to urban markets. Currently Cape Range’s Arcadian Wireless Local Loop products are being used in developing countries and remote locations to connect communities to existing telephone networks.
In regions where the terrain or economic circumstances make it unfeasible to install cables into communities, the Arcadian WLL connects users to public telephone lines via wireless radio technology.
Cape Range plans to implement its Spread Spectrum Wireless technology in suburban Perth later this year. Spread Spectrum will allow residential users to access voice, fax and data facilities from a single wireless channel.
Mr Wise said wireless signals in busy urban centres were prone to interference. But recent Spread Spectrum trials in Kuala Lumpur and Perth and recorded little interference from other wireless signals, he said.
