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Firstwave Cloud Technology (ASX:FCT) - Executive Chairman, John Grant
Executive Chairman, John Grant
Source: ARN
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  • FirstWave Cloud Technology (FCT) has successfully raised $9 million through the retail entitlement offer component of its $14.9 million equity raise
  • This raise was announced in late May and is aimed at supporting FirstWave’s strategy of becoming a leading cybersecurity partner
  • The retail component received a strong take-up of 82 per cent from eligible shareholders
  • Approximately 200.4 million new shares will be issued under the retail entitlement offer and are expected to be allocated on Tuesday, June 16, with shares to trade on the ASX on the following day
  • Company shares have slumped 13.3 per cent and are trading for 7.8 cents each

FirstWave Cloud Technology (FCT) has raised $9 million through the retail component of its four-for-five accelerated pro-rata non-renounceable entitlement offer.

The retail entitlement offer received a total of 921 applications for approximately $6.9 million. This represents a take-up rate by eligible retail shareholders of roughly 77 per cent.

Additional applications accepted under the retail shortfall facility totalled approximately $0.4 million after a scale back was undertaken in accordance with the retail entitlement offer terms and allocation policy.

This increased the total take-up from eligible retail shareholders to $7.3 million (representing a total take-up rate by eligible retail shareholders of 82 per cent).

The retail entitlement offer marks the second stage of FirstWave’s $14.9 million equity raising, which was announced on May 21.

As the retail component was fully underwritten, the balance of 37 million new shares (representing $1.7 million) comprising the shortfall and entitlements of ineligible retail shareholders, will be allocated to priority sub-underwriters of the retail entitlement offer.

Approximately 200.4 million new shares will be issued under the retail entitlement offer and are expected to be allocated on Tuesday, June 16, 2020, and will trade on the ASX on the following day.

“Together with proceeds from the institutional placement and entitlement offer, FirstWave can now turn its focus completely to maximising returns from the significant global opportunity facing the company,” Executive Chairman John Grant said.

When the equity raise was first announced, the security-as-a-service solutions company stated the funds would go towards supporting its strategy of becoming a leading cybersecurity partner.

Company shares have slumped 13.3 per cent and are trading for 7.8 cents each at 11:43 am AEST.

FCT by the numbers
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