- Mobile data company Flexiroam (FRX) raises $1.5 million through a placement to accelerate its growth strategy
- FRX has issued investors, including two large shareholders, with 37.5 million shares at 4 cents each, an 18 per cent premium to its last closing price
- The money is going towards developing new eSIM solutions to meet the internet of things (IoT) demand, and is also being used for sales and engineering resources in Europe
- Once the placement is completed, Flexiroam will have around $3 million in cash reserves
- Company shares are up 20.6 per cent to trade at 4.1 cents at 11:50 am AEDT
Flexiroam (FRX) has raised $1.5 million through a placement to professional and sophisticated investors.
The company issued investors, including two large shareholders, 37.5 million shares at 4 cents which marked an 18 per cent premium to its last closing price.
The mobile data company will use the money to accelerate its growth initiatives. These include developing new eSIM solutions to capture internet of things (IoT) demand to pursue scalable opportunities, and hiring sales and engineering resources across Europe to increase capacity and capability.
FRX also hopes to drive global penetration and substantial revenue expansion in the 2023 financial year.
CEO Marc Barnett was pleased with the response to the placement.
“This capital raise, undertaken at a premium to the last traded price, was a strong signal of the value that our large investors see in Flexiroam and their confidence in the management team’s ability to deliver on the opportunity in front of us,” he said.
“I look forward to delivering on the growth opportunities as our new leadership team develops and commercialises IoT connectivity solutions, our existing solutions agreements are rolled out, and we leverage the demand for international travel, to rapidly scale our business globally.”
The placement is expected to settle on October 22 and once it has been completed, Flexiroam will have around $3 million in cash reserves.
Company shares were up 20.6 per cent to trade at 4.1 cents at 11:50 am AEDT.