K2fly secures $7m from investors

Listed software developer K2fly is raising $7.25 million from a share placement, primarily to strengthen its balance sheet and pursue potential acquisitions.

K2fly, which develops enterprise-wide technical assurance software solutions, said the placement was well-supported by institutional and sophisticated investors with experience in the resources sector.

The placement funds are also going towards sales and marketing initiatives and product development.

Chief executive Brian Miller said he was pleased with the level of confidence in K2fly, and that the raising provided the company with a solid balance sheet to execute its future strategy.

K2fly will issue 25 million shares priced at 29 cents each, representing about an 11 per cent discount to the company’s last closing price (on April 15).

Argonaut acted as lead manager to the raising.

K2fly emerged from a trading halt this morning, with its shares closing up 3 per cent to trade at 32 cents.