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Bigtincan (ASX:BTH) - CEO, David Keane
CEO, David Keane
Source: The Market Herald
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  • Sales and service platform provider Bigtincan Holdings (BTH) has received commitments for a $35 million placement to institutional shareholders
  • Over 52 million placement shares were issued at a price of 67 cents each, representing an 11.8 per cent discount to the last closing price
  • The company will also seek to raise a further $5 million via a non-underwritten share purchase plan
  • Eligible shareholders will be able to apply for up to $5000 worth of shares at the same issue price as the placement
  • Funds raised will be used to accelerate targeted mergers and acquisitions and software-as-a-service strategies
  • Bigtincan Holdings is down 4.6 per cent at Thursday’s close, with shares trading for 72.5 cents each

Sales and service platform provider Bigtincan Holdings (BTH) has received commitments for a $35 million placement to existing and new institutional shareholders.

Institutional placement

Over 52 million placement shares were issued at a price of 67 cents each, representing an 11.8 per cent discount to the last closing price and a 10.2 per cent discount to the five-day volume-weighted asset price (VWAP).

The shares will be issued under the company’s available placement capacity and will rank equally with existing BTH shares.

Settlement is expected on Wednesday, May 27.

Share purchase plan

The company will also seek to raise a further $5 million via a non-underwritten share purchase plan.

Eligible shareholders will be able to apply for up to $5000 worth of shares at the same issue price as the placement.

The share purchase plan will open on June 1 and close on June 16.

A $40 million rocket

Bigtincan has been active and aggressive in its growth strategy, and the $40 million equity raise is aimed at putting a rocket under the company’s activities.

The company has successfully completed six mergers and acquisitions (M&A) transactions since late 2017, and the new funds will be used to further accelerate key strategic priorities.

The company’s strong — and now enhanced — balance sheet will enable BTH to target further M&A opportunities through the next financial year.

The company also recognises the opportunities to take advantage of increasing demand for software-as-a-service (SaaS) while more people are working from home and businesses require enhanced digitisation and mobilisation strategies.

By growing its technology investments the company believes it can “take advantage of SaaS market tailwinds.”

Aside from funding the company’s M&A and SaaS strategies, the funds raised will also be used for general working capital, and to cover the costs of the equity raising.

Bigtincan Holdings is down 4.6 per cent at Thursday’s close, with shares trading for 72.5 cents each.

BTH by the numbers
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