- 4DS Memory (4DS) is looking to raise up to $5 million through a placement and share purchase plan
- Under the placement, the company is issuing 52 million shares to investors at 4.8 cents each — a 20 per cent discount to the five-day volume-weighted average price
- Up to a further $2.5 million is being raised through the share purchase plan but 4DS has the right to accept up to an additional $1 million worth of oversubscriptions
- 4DS is using the money for the development of its 4DS Interface Switching ReRAM, including maintenance of intellectual property and working capital
- Company shares are down 13.6 per cent to trade at 5.1 cents
4DS Memory (4DS) has received binding commitments for a placement to raise $2.5 million.
The company will issue 52 million ordinary shares to domestic and international institutions, as well as high net worth investors in Australia. The shares will be issued at 4.8 cents each which represents a 20 per cent discount to the five-day volume-weighted average price.
Mac Equity Partners International acted as sole and lead manager, and will receive a six per cent fee on the funds raised and will also be issued five million options exercisable at 8 cents within two years of the issue date.
Additionally, 4DS plans to raise up to a further $2.5 million through a share purchase plan (SPP). Eligible shareholders may subscribe for up to $30,000 worth of new shares at the same price as the placement.
As part of the SPP terms, any funds received in excess of the $2.5 million may be accepted by the board but will be capped at $1 million.
Company director David McAuliffe intends to subscribe for his full entitlement of $30,000 and Howard Digby plans to subscribe for $15,000.
The SPP will be open from November 25 until December 14 with shares to be issued on December 16.
4DS plans to use the money raised in the placement and SPP to continue developing the 4DS Interface Switching ReRAM, including maintenance of intellectual property and working capital.
Company shares were down 13.6 per cent to trade at 5.1 cents at 12:17 pm AEDT.