Wavenet secures $1.2m for US expansion

Burswood-based wireless communication technology developer Wavenet International Ltd will raise $1.2 million through a placement to fuel further US expansion.

The placement, with UK based investment group Obelisk Nominees Ltd, is of 7.7 million shares, or 14.9 per cent of issued capital.

Wavenet will apply some of the funds to further research and development, as well as strengthening its position in the pursuit of new acquisitions.

The full text of Wavenet's announcement is pasted below

Wavenet International Ltd today announced a $1.2 million capital raising to support the Company's growth strategy.

Obelisk Nominees Ltd, a UK based investment group has injected $1.2 million into Wavenet through a 14.9% share placement. Wavenet has issued to Obelisk 7,736,680 ordinary fully paid shares at 15.5 cents.

The capital will be used to fund Wavenet's existing growth strategy, including expansion of the Company's activity in the United States, Wavenet's key market. Funds will also be applied to further R&D on the Company's existing technology.

Proceeds from the issue will also be used to strengthen Wavenet's position in its pursuit of new acquisitions, a number of which are currently under evaluation.

Wavenet CEO Richard Timms said the placement would enable the Company to leverage greater growth opportunities over the next 6 months.

"The placement is a strong vote of confidence in Wavenet and its technology," he said.

"The additional cash will enable us to fortify our platform for growth, giving us a wider range of opportunities and providing us with greater financial flexibility in conducting an acquisitive transaction."