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Plexure Group (ASX:PX1) - Chairman, Phil Norman
Chairman, Phil Norman
Source: Phil Norman/LinkedIn
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Find out more about this capital raise

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  • Plexure (PX1) is launching a $20 million capital raise to partially fund a $120 million acquisition of transaction platform provider TASK
  • The capital raise includes a $15 million fully underwritten placement to Australian and New Zealand-based investors
  • In addition, Plexure hopes to raise up to NZ$5.2 million (A$5 million) through a placement to existing New Zealand shareholders
  • Plexure will seek shareholder approval for the capital raise when it seeks approval to acquire TASK
  • Plexure is currently in a trading halt and shares last traded at 54.5 cents on August 31

Plexure (PX1) has announced it will raise up to $20 million through a conditional placement.

Prior to the market opening, Plexure entered a trading halt relating to a proposed capital raise.

While more details were released in a subsequent announcement, the company already disclosed it would raise up to $20 million through the issue of shares to institutional, sophisticated and professional investors.

The capital raise consists of a $15 million fully underwritten institutional placement to institutional, sophisticated and professional investors in Australia and New Zealand and a placement of up to NZ$5.2 million (A$5 million) to existing New Zealand shareholders who don’t participate in the institutional placement.

The placement shares will be issued at 50 cents per share which represents an 8.3 per cent discount to the last closing price of 54.5 cents on August 31.

The New Zealand-based software company will use the money raised to partially fund the acquisition of transaction platform provider, Task Retail and its global subsidiaries (TASK).

The $120 million purchase was announced in mid-August and is expected to expand Plexure’s customer base, enhance its product portfolio and potentially boost revenue.

Plexure Chairman Phil Norman commented on the capital raise.

“The capital raising we undertook last year did not contemplate an acquisition of the size of TASK and is necessary to partially fund the cash component of the transaction and maintain our cash reserves at a level that meets the company’s working capital requirements,” he said.

“The Plexure Board is excited about the acquisition of Task as the combination of the two businesses brings revenue diversification and growth, product portfolio and technology platform enhancements, and cost synergy opportunities.”

Plexure will seek shareholder approval for the capital raise when it seeks approval to acquire TASK.

The company expects to remain in the trading halt until Thursday, September 2.

Company shares last traded at 54.5 cents on August 31.

PX1 by the numbers
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