Covata Ltd (AX:CVT) has raised A$1.5m from a share placement and is also targeting a raise of up to A$1.8m from an ongoing entitlement offer. The company intends to use the proceeds to strengthen its sales and technical resources in Europe, for product development and for general working capital. The recently acquired dataglobal data classification technology should be available to use in Covata solutions from Q119.
Placement completed, entitlement offer underway
Covata has placed 53.6m shares at A$0.028 with institutional shareholders, bringing in gross proceeds of A$1.5m. For every three new shares placed, shareholders received one option (exercise price A$0.055, exercisable by 6 June 2020). The company has also launched an entitlement offer, whereby shareholders can subscribe for one share at A$0.028 for every 11 shares held (maximum number of shares to be issued: 64.064m). Shareholders who subscribe will be given one option for every three new shares, on the same terms as the placement options. Full take-up of the entitlement offer would result in gross proceeds of A$1.79m. The ex-rights date is 13 June, the closing date is 28 June and the new shares are due to be issued on 5 July.
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