Rakon’s Share Purchase Plan to raise $21.1M
Rakon’s Share Purchase Plan to raise $21.1M, bringing total raised to $86M
Oct. 21 (BusinessWire) – Rakon Ltd., the maker of crystal oscillators used in navigation systems and mobile phones, said shareholders applied for $21.1 million of stocks under its Share Purchase Plan, bringing its total capital raising to about $86 million.
The company had aimed to raise $20 million under he SPP and said it will allow the small over-subscription without scaling. It raised $65 million in a placement at a deep discount to fund the expansion of its Chinese manufacturing operations.
Some 18.3 million shares will be issued at $1.15 apiece, the same price offered in the placement.
Rakon has “substantial earnings growth opportunities in front of us,” chief executive Brent Robinson said in a statement. “We now have the platform to swiftly proceed with planned investment into China to secure the opportunities and maximise returns for all shareholders.”
Some $30 million of Rakon’s new capital injection will be used for the first construction stage of a new Chinese manufacturing factory with joint venture partner Timemaker.
Additional funds will be used to repay debt and settle its outstanding $6.3 million deferred consideration with its Chinese partner.
The shares rose 5 cents to $1.25 yesterday and are down 17% in the past month.