Wavenet fully subscribed

11/05/2004 - 22:00

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A CAPITAL raising undertaken by wireless technology company Wavenet International Limited closed fully subscribed last week, with the company raising $A5,000,000 through a share placement.

A CAPITAL raising undertaken by wireless technology company Wavenet International Limited closed fully subscribed last week, with the company raising $A5,000,000 through a share placement.

The raising, which closed on Friday May 7, was the first time Wavenet has undertaken a significant capital raising since listing on the Australian Stock Exchange in March 2000, when it raised $A10 million in an initial public offering.

There was also a small placement of $500,000 in November 2002.

Wavenet managing director John Thompson said funds raised would provide additional working capital to support recently announced supply contracts and forthcoming orders, and to develop new applications for the technology.

“The raising gives the company a new lease of life to not only execute on existing and new contracts, but to broaden our approach to the market,” he said.

“A large number of institutional investors have decided the stock does show good promise for appreciation over the next 12 to 18 months and have elected to register.”

A prospectus indicated the share placement of 22,727,273 was to be made in two tranches, with the shares to be placed at 22 cents a share, representing a 25 per cent discount to the volume-weighted average trading price for Wavenet for the year to date.

The maximum number of shares issued in the first tranche was 4,282,750, raising $942,205. The remaining 18,444,523 shares were issued in the second tranche, representing $4,057,795, which was approved by the shareholders at a meeting held at the end of April.

Some directors and senior management of Wavenet subscribed for shares under the second tranche placement, which was also approved by shareholders.

The lead manager for the issue is Cartesian Capital Pty Ltd. Shares are being placed with investors of Cartesian Capital and Lonsdale Securities Limited.

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