CommSoft Raises A$2.15m From Investors
CommSoft Raises A$2.15m From New And Existing Investors
Latest Step In Rebuilding Secures Working Capital And Funding For Planned Growth
Auckland, 30 August 2001 – CommSoft Group Limited (ASX/NZSE: CSG) today announced that it has secured funding of A$2.15 million to underpin its planned growth programme.
The funds will be raised through the issue of a combination of 7,146,874 new ordinary shares issued at AUD 5 cents and 1,796,230 convertible notes issued at A$1.00 each. The ordinary shares will be issued on 31 August 2001.
The convertible notes will convert to ordinary shares at the greater of AUD 15 cents or 25% below the prevailing market price if converted within the first 12 months following subscription. Conversion during the second 12 months will be at the greater of AUD 30 cents or 25% below the prevailing market price at the time of conversion. The issue of the convertible notes is subject to shareholder approval at the Company’s forthcoming Annual General Meeting.
New and existing shareholders are providing the funding. Two existing investors, KHATZ Capital and Geoff Wilding, have shown their strong confidence in the Company by participating in the capital raising.
“We’re delighted to have secured this funding,” says Group Managing Director Mark Lunt. “CommSoft has worked very hard to get its house in order, and we’re gratified at the confidence shown in us by both existing and new investors.”
CommSoft will use the funds to support planned growth programmes for the UK, Australian and New Zealand markets.
“Our investors recognise that CommSoft has before it a number of significant and scalable opportunities as it takes its telecommunications and CRM software to international markets,” says Mark Lunt. “In NetMaster, Brains and CallMaster we have a very strong product set in a fast growing market sector.
This funding further supports the strong line up of talented people and good international distribution channels we have in place. We’re very focussed on transforming those advantages into business success.”
Since April this year, CommSoft has moved quickly to align costs more closely with expected revenues.
“While there’s still much work to be done, we’re of the view that CommSoft’s products are competitive and have considerable potential and that the management changes and restructuring will ensure improved performance and accountability.”
“We have a simple focus of making our business more efficient and increasing sales productivity,” adds Mark Lunt. “We aim to further develop the markets for NetMaster, take Brains to the UK and focus on managed growth for CallMaster.”
Over the next 14 days CommSoft anticipates announcing its result for the full year ending 30 June.
About CommSoft Group Limited
CommSoft Group Limited is an international leader in the development of niche software products for the telecommunications industry. CommSoft develops and markets leading edge telecommunications and Customer Relationship Management software to help all kinds of enterprises make better use of their telecommunications equipment through better cost management, increased staff productivity and improved customer service.
Its products are bundled with products and services by some of the world's largest telecommunications suppliers.
More information on CommSoft is available at www.commsoftgroup.com