IkeGPS announces timing of further $3 million share sale

Tuesday 30 August 2016 09:30 AM

IkeGPS announces timing of further $3 million share sale

By Sophie Boot

Aug. 30 (BusinessDesk) - IkeGPS, the laser measurement toolmaker, has announced the timing of its planned $3 million share purchase plan.

The company raised $5.25 million earlier this month through placing more than 8 million shares at 60 cents per share, and said at the time that it was planning to raise a further $3 million.

Today, ikeGPS said it would look to sell about 5 million shares at the same price to people who held the stock at 5pm yesterday, and each holder could buy as much as $15,000 of new shares, with the placement intended to close on Sept. 20.

IkeGPS wants to be dual-listed on the Australian Securities Exchange, and said it anticipates that being completed on Nov. 8, within 90 days of the placement being completed.

The Wellington-based company will use the money raised to further expand sales and marketing in the United States and the wider international market, to develop mobile apps to support customer needs and for working capital.

"The successful placement is a demonstration of support for the growth plans of ikeGPS and the potential for our products in addressing the global electric utility, construction and signage markets," chairman Rick Christie said. "The equity raised under the placement and share purchase plan will be used to provide ikeGPS with increased capacity to expand and accelerate sales and marketing of our IKE4 and mobile solutions, in existing and new markets."

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. The company today repeated that prior to the capital raising it remained on track to be cash breakeven in the fourth quarter of its 2017 financial year.

Shares in ikeGPS last traded at 61 cents, down 12.9 percent since the start of the year.

(BusinessDesk)

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