- Buddy Technologies has successfully raised $6.1 million for operating expenses and company growth
- A total of 305.7 million fully paid shares were issued priced at $0.02 cents each
- Buddy also plans to raise an additional $5 million under a share purchase plan
Cloud based solution company Buddy Technologies has successfully completed a $6.1 million placement.
A total of 305.7 million fully paid shares were issued to sophisticated and institutional investors at a price of $0.02 per share. This price represents a 16.7 per cent discount from the last closing price of $0.024 on September 6.
The placement was undertaken in two phases with phase one comprising of 250.6 million shares, roughly 82 per cent.
Settlement of this phase is scheduled to occur on September 18.
The remaining 55.1 million shares make up phase two, however are subject to shareholder approval at a general meeting which will be held in late October 2019.
The placement was well supported by both existing and new institutional investors, as well as sophisticated investors.
In addition to this placement, Buddy intends to undertake a share purchase plan to existing eligible shareholders to raise an additional $5 million, before costs.
Existing shareholders will be given the opportunity to subscribe for up to a maximum of 250 million shares at the same price of $0.02 per share.
Under this plan each eligible shareholder, whether from Australia or New Zealand, will be able purchase up to $30,000 worth of shares.
Buddy has the opportunity to reject or scale back applications if funds exceed, or are about to exceed $5 million.
Funds raised from both the placement and share purchase plan will be used for operating expenses and growth of its consumer and commercial business.
Buddy Technologies provides simple, affordable and engaging solutions to its customers to make their technology platforms smarter and occupants more efficient, informed and environmentally aware.
Its Buddy Ohm technology is a resource monitoring solution that simplifies building operations and provides peace of mind by harnessing real-time utility and operational data.
These reduce risks and improve operations, sustainability and savings.
Buddy shares are currently down 8.33 per cent trading for 2.2 cents apiece in a $44.90 million market cap.