IkeGPS completes $3M capital raise   26 Sep 2016

Monday 26 September 2016 09:58 AM

IkeGPS completes $3M capital raise, largely through sub-underwriters

By Sophie Boot

Sept. 26 (BusinessDesk) - IkeGPS, the laser measurement toolmaker, has completed $3 million of capital raising to help fund its push into international markets, with about three-quarters picked up by the sub-underwriters.

The company raised $5.25 million in August selling more than 8 million shares at 60 cents, and completed a share purchase plan, selling 5 million shares at the same price to raise a further $3 million. Those funds will help expand sales and marketing in the US and the wider international market, to develop mobile apps to support customer needs and for working capital. The company has said it's on track to be cash breakeven in the fourth quarter of its 2017 financial year.

Of the 5 million shares sold in the share purchase plan, 1.2 million were bought by existing eligible shareholders and 3.8 million will be taken up by sub-underwriters. The sub-underwriters are an existing major investor and director, and an Australian institutional investor, IkeGPS said in a statement.

IkeGPS wants a secondary on the Australian Securities Exchange and said it anticipates that being completed on Nov. 8, within 90 days of the placement being completed. The company had considered a Nasdaq listing but found the process too difficult and expensive.

At its annual meeting in Wellington earlier this month, chairman Rick Christie said ikeGPS had looked at a few potential utility acquisitions last year, with the potential to pay in scrip, cash, or both, and those were "still live opportunities". The money raised gives the company the ability to make acquisitions without having to go back to shareholders, Christie said, though he didn't rule out seeking more capital.

In the year ended March 31, ikeGPS more than doubled sales to $9.2 million but its net loss widened to $8.8 million from $5.1 million a year earlier.

Shares of ikeGPS last traded at 60 cents, down 14 percent since the start of the year.

(BusinessDesk)

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