IkeGPS raises $900,000 in institutional placement
Secondary US listing being eyed by tool developer.
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IkeGPS Group has raised $900,000 from three institutional investors to fund expansion in the US market, where the laser measurement tool developer is considering a secondary listing.
The placement came after a foreign institution offered to invest $500,000 and two existing IkeGPS shareholders put up another $400,000, the Wellington-based company says.
The shares were sold at 81c each, a 15% premium to the last traded price of 70c. The investment expanded the number of shares on issue by about 1.1 million, or 2.21%, to 52.2 million.
IkeGPS will use the proceeds "specifically to drive development in the United States market."
"As we have stated previously, we are actively assessing our options in the US capital markets, including the potential for a secondary listing there," chief executive Glenn Milnes says.
"Our ability to attract capital of this calibre is testament to our growth trajectory and potential to become the measurement platform of choice for targeted industries seeking to collect, analyse and manage their assets."
The company is foregoing short-term profits to chase long-term international sales growth. At the end of September it had cash holdings of about $10 million, down from $21 million a year earlier.
In November the company reiterated its view full-year revenue and other income will triple in 2016. It posted a net loss of $3 million in its first half, as sales jumped 152% to $4.3 million.
Last week it said it will stop paying to use the General Electric brand as its own name recognition gains traction, which will improve profit margins.
(BusinessDesk)
Paul McBeth
Mon, 11 Jan 2016
Mon, 11 Jan 2016
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IkeGPS raises $900,000 in institutional placement
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