Catapult Group International Ltd (ASX:CAT) has raised $25 million via an institutional placement.
The funds will be used to fund marketing and sales initiatives, particularly in terms of entering global markets.
Catapult is a leading global provider of elite athlete-wearing tracking solutions that provide analytical data regarding health and performance.
Placement represents a slight discount
The placement price of $1.10 represented a discount of 6.8% to the last traded price of $1.18.
While the issue of 22.7 million new shares will be earnings per share dilutive, Bell Potter has maintained its hold recommendation while reducing its valuation from $1.60 to $1.40.
Trading at discount to valuation
The broker’s valuation implies a premium of 14% to Tuesday’s closing price of $1.23.
Catapult's shares recently hit a 12-month low of $1.07 after trading as high as $2.47 in July last year.
While Catapult’s products have been taken up by elite sporting organisations and the company has been able to generate strong revenue growth, it has taken some time to move to profitability.
Bell Potter is forecasting continued strong revenue growth and a nominal maiden profit in 2020.