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Swoop (ASX:SWP) - CEO, Alex West (left) & Non Executive Chairman, James Spenceley (right)
CEO, Alex West (left) & Non Executive Chairman, James Spenceley (right)
CEO, Alex West (left) & Non Executive Chairman, James Spenceley (right). Source: Swoop/LinkedIn
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  • Network services provider Swoop (SWP) enters a trading halt ahead of a $41 million underwritten placement
  • The telecom stock is also planning to raise an extra $5 million through a share purchase plan, allowing eligible shareholders to subscribe for shares worth up to $10,000
  • Swoop is using the funds to support the recently announced purchase of NSW-based telco Countrytell, as well as any future acquisitions
  • Along with the capital raise, Swoop has increased its revenue guidance for the 2022 financial year to between $43 and $45 million
  • SWP expects to come out of the trading halt on October 18 and its shares last traded at $2.09 on October 13

Swoop (SWP) has entered a trading halt ahead of an underwritten capital raise.

Soon after placing its shares in the halt, the telecommunications stock revealed it would raise $41 million through an underwritten placement.

About 22 million shares will be issued to institutional, professional and sophisticated investors at $1.85 per share.

The company will also launch a share purchase plan (SPP) to eligible shareholders to raise up to a further $5 million. Shareholders will be able to subscribe for up to $10,000 worth of shares and the SPP is expected to be open from October 19 to November 8.

In addition to costs of the offer and working capital, Swoop will use the money to support the recently announced acquisition of Countrytell as well as future acquisitions across fixed wireless, voice, fibre infrastructure and resale providers.

The network services provider is acquiring Countrytell for $4.2 million through a mix of cash and shares to further expand its offering and covering in regional Australia.

Swoop also said it was in advanced negotiations with multiple banks regarding a debt facility which may also be used for acquisition capital.

Along with the capital raise, Swoop increased its revenue guidance for the 2022 financial year to between $43 and $45 million and its earnings before interest, tax, depreciation and amortisation to between $10.5 and $11 million.

The increase is based on existing acquisitions and any future ones that are expected to be financially accretive in FY22.

Swoop expects to come out of the trading halt on October 18 and its shares last traded at $2.09 on October 13.

SWP by the numbers
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