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- FirstWave Cloud Technology (FCT) has launched a $14.9 million equity raise to support its strategy of becoming a leading cybersecurity partner
- The funds will also support the company’s goal to be cash flow break-even by December 2022
- The raise is split into a $3.5 million placement and an underwritten retail and institutional entitlement offer to raise $11.4 million
- FirstWave provides cloud-based cyber-security solutions for email, endpoint, firewall, and web security
- Company shares are trading flat at 6.2 cents each at market close
FirstWave Cloud Technology (FCT) has launched a $14.9 million equity raise to support its strategy of becoming a leading cybersecurity partner.
The funds will also support the company’s goal to be cash flow break-even by December 2022.
The raise will include an $11.4 million four for five non-renounceable pro-rata entitlement offer and a $3.5 million institutional placement.
FirstWave provides cloud-based cyber-security solutions for email, endpoint, firewall, and web security.
“This capital raise is an opportunity for both existing and new investors to provide the runway the company needs to realise its opportunity to be a leading cybersecurity partner to Telcos and managed security service providers worldwide,” Executive Chairman John Grant said.
Placement
The $3.5 million placement will be offered to institutional investors at 4.5 cents per share. The offer price represents a 35.3 per cent discount to the seven-day volume-weighted asset price (VWAP) up to May 18.
Entitlement offer
The $11.4 million entitlement offer is split into two offers; an institutional entitlement offer and a fully underwritten retail entitlement offer.
The institutional component will aim to raise $2.4 million and the retail component is hoped to raise up to $9 million.
All new shares issued under the offer will be issued at 4.5 cents each, the same price offered under the placement component.
Executive Chairman, John Grant will accept his full entitlement and participate as a sub-underwriter to the retail entitlement offer up to $300,000. No fees, commissions or other consideration will be payable to the Chairman in connection with his role as a sub-underwriter to the offer.
Directors, Paul MacRae will be taking up his full entitlement and Scott Lidgett will be taking up his entitlement up to $100,000.
The placement and institutional entitlement offer are expected to settle on May 28, and the retail entitlement offer is expected to close on June 15.
FirstWave’s shares are trading flat at 6.2 cents each at market close.
