G8 Communications Ltd’s (ASX:G8C) shares have surged after receiving commitments of $3 million from an oversubscribed share placement to sophisticated investors at $0.03 per share.
The proceeds from the placement is expected to be used to commence distribution of G8’s wireless modem and wireless router products to AT&T (NYSE:T) this month.
Last week, G8C completed a certification required by AT&T, allowing it to deploy its products throughout the AT&T and T-Mobile networks.
AT&T and T-Mobile combined represent over 75% of Machine to Machine (M2M) data lines in the United States.
G8 specialises in M2M connectivity, providing hardware solutions for some of the world’s largest companies including Coca Cola (NYSE:KO), Verizon (NYSE:VZ) and now AT&T.
The company’s products have the potential to attract hundreds of thousands of purchase orders in the AT&T network.
In addition, proceeds will be used to meet demand for the Hills Ltd (ASX:HIL) exclusive distribution agreement to market G8 products through Hills’ Australian network.
The recent growth in G8’s market opportunities in the U.S. and other countries can be viewed as a significant achievement in the first 5 months since the company listed on the ASX.
G8 closed its books for the June quarter with $1.3 million in cash.
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