- Family Zone Cyber Safety (FZO) gets binding commitments to raise up to $42 million through a two-tranche placement
- If shareholders approve the second tranche, a total of over 123.5 million shares will be issued to investors at 34 cents, marking a 17 per cent discount to the last traded price
- Family Zone will use the money for the cash component of the US$52 million acquisition of Qustodio, and to support additional growth and corporate opportunities
- FZO shares are down 12.2 per cent and are trading at 36 cents
Family Zone Cyber Safety (FZO) received binding commitments to raise up to $42 million through a two-tranche placement.
The first tranche comprises roughly 91.03 million shares and is expected to settle on May 11. The second tranche, subject to shareholder approval, will issue roughly 32.5 million shares. Shareholder approval will be sought at a general meeting in June.
All up, over 123.5 million shares could be issued to institutional, professional and sophisticated investors.
Shares will be issued at 34 cents each which marks a 17 per cent discount to the last traded price and a 23 per cent discount to the five-day volume-weighted average price.
Chairman Peter Pawlowitsch and Executive Directors Tim Levy and Crispin Swan are planning on subscribing to $620,000 worth of shares in the placement, which is also subject to shareholder approval.
Managing Director Tim Levy said he was pleased with the support and commitment shown from investors as the company focuses on its vision to create a “global online cybersafety platform offering world leading technology to protect and support our children in the digital world.”
Family Zone will use the money for the acquisition of Qustodio, and to strengthen its balance sheet to support additional growth and corporate opportunities.
The US$52 million (A$74.4 million) acquisition was announced earlier this week and is set to expand Family Zone’s capability and global footprint.
FZO was down 12.2 per cent and trading at 36 cents at 1:17 pm AEST.