Crowd Mobile Limited (Crowd Mobile or the Company) is pleased to announce that it is undertaking a pro-rata fully Underwritten Non-renounceable Rights Issue (Offer or Rights Issue).
Key highlights of the Rights Issue:
- Fully Underwritten Non-renounceable Rights Issue to raise circa $12.8 million
- Rights issue on a 3:5 basis at an issue price of $0.25 per share
- Commitments received from institutional and high net worth investors
- All directors and senior management commit $1.77 million in sub-underwriting
- Funds raised will contribute towards completing the Track Holdings acquisition
The Offer is fully Underwritten and DJ Carmichael Pty Ltd is acting as Lead Manager and Underwriter for the Rights Issue. Funds raised from the Offer will be used to fund the acquisition of 100% of the share capital in Netherlands based m-payments company Track Holdings B.V. (Track), as announced to the market on 10 June 2015 (Track Acquisition). The Offer is conditional upon the successful completion of the Track Acquisition.
Commenting on the Rights Issue, Crowd Mobile CEO Mr Domenic Carosa said:
“The fully Underwritten Rights Issue we are launching today will enable Crowd Mobile to complete the Track Acquisition. In addition, it also provides the Company with the flexibility to fully capitalise on the future growth opportunities of the combined group and positions Crowd Mobile as a leading m-payments organisation globally.
“We are very pleased to have DJ Carmichael fully underwriting the offer, as well as having all Directors and senior management of Crowd Mobile committed to sub-underwriting $1.77 million of the offer. This level of support is very encouraging and, we believe, reflects the growth prospects for the Crowd Mobile group.
“The Board has taken a conscious decision to minimise dilution to existing shareholders. As such, a rights issue was favoured over a share placement as this allows supportive shareholders
to participate in the future growth of the business.
“We are very excited about completing the Track Acquisition and integrating the businesses. The acquisition will provide strong revenue and earnings growth for Crowd Mobile, as well as
extending the Company’s global m-payments reach to over 160 telcos and opening up new markets, leaving the Company very well placed to leverage the global mobile economy mega
The Rights Issue will raise approximately $12.8 million before costs and the new shares will rank equally with shares currently on issue. All shareholders are encouraged to take part in the Rights Issue. The Rights Issue is fully underwritten by DJ Carmichael. The Offer Document including an Entitlement and Acceptance Form will be mailed to shareholders on Friday 25 September 2015.
Crowd Mobile is an ASX listed entertainment and m-payments company. More details visit CrowdMobile.com or search ASX code "CM8"
M: 0411 19 69 79