- Business analytics company 9Spokes (9SP) is raising $1.12 million through a placement for working capital and to fund a company review
- 9Spokes issued 373 million shares at 0.3 cents, representing a 25 per cent discount to the 15-day VWAP prior to its voluntary suspension on May 30
- Shareholders who subscribed to the placement have also agreed to provide 9Spokes with a working capital facility of up to NZ$353,000 (A$320,754)
- As part of the strategic review, two of the longest-serving Non-Executive Directors stepped down and a new Chairman, Mr Kevin Phalen, has been appointed
- Company shares last traded at 0.4 cents on May 27
9Spokes (9SP) has raised $1.12 million through a placement to existing and original shareholders.
The company issued 373 million shares at 0.3 cents each which represents a 25 per cent discount to the 15-day volume weighted average price prior to its voluntary suspension.
The business analytics company requested a voluntary suspension on May 30 pending the submission of its annual report and the completion of negotiations regarding potential funding or commercial transactions.
Under the terms of the placement, its completion is conditional on 9Spokes lodging a “transaction-specific” prospectus with the Australian Securities and Investments Commission and other operational conditions being met.
Subject to the conditions, the company expects the placement shares will be issued and allocated on August 1.
In addition, the shareholders who subscribed to the placement have agreed to provide to 9Spokes a working capital facility of up to NZ$353,000 (A$320,754), including all costs of the working capital facility, or such other amount agreed with the relevant subscribers.
9Spokes will use the money from the placement and facility for additional working capital, as well as to fund a strategic review of the company and its operations.
In line with the strategic review, the business is reducing the number of directors from five to three, with a focus on banking experience. As such, the longest-serving Non-Executive Directors, Paul Reynolds and Thomas Power, have decided to step down from the board, effective immediately.
Mr Kevin Phalen has been appointed into the role of Chairman and will lead the board as 9Spokes undertakes the strategic review and enters a new phase.
Company shares last traded at 0.4 cents on May 27.