Wavenet share deal
WIRELESS technology company Wavenet International Limited is hoping to raise $A5,000,000 through a share placement.
This is the first time Wavenet has undertaken capital raising since listing on the Australian Stock Exchange in March 2000, raising $A10 million in an initial public offering. The share placement of 22,727,273 is 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 to be issued in the first tranche is 4,282,750, raising $942,205.
The remaining 18,444,523 shares will be issued in the second tranche, representing $4,057,795 following shareholder approval to be sought at a meeting at the end of April. A prospectus for the second tranche is currently being prepared.
Some directors and senior management of Wavenet will be subscribing for shares under the second tranche placement, subject to shareholder approval.
Wavenet managing director John Thompson said the placement “will provide additional working capital to support our recently announced supply contracts and forthcoming orders.”
The lead manager for the issue is Cartesian Capital Pty Ltd. Shares are being placed with investors of Carte-sian Capital and Lonsdale Securities Limited.