K2fly Ltd (ASX:K2F) has completed a strongly supported share placement and received irrevocable commitments to raise A$7.25 million at an issue price of A$0.29 per share.
The placement was supported by new high-quality institutional investors and sophisticated investors with specific experience and knowledge in the resources sector.
This strong support recognises not only the commercial opportunities for K2fly but also the value and importance of the product offering to the sector more generally.
Funds raised will strengthen K2F’s balance sheet and will be applied towards potential acquisitions, sales and marketing, product development and general working capital.
“Shows confidence in company’s strategy”
K2F CEO and executive director Brian Miller was pleased with the confidence in the company and its strategy.
He said: “The strong support from the investment community, particularly from new institutional investors, is testament that K2F has the right strategy, products and team.
“This placement gives us a solid balance sheet to execute our future strategy.
“We would like to take this opportunity to thank our investors for their ongoing support and welcome new institutional and sophisticated investors to our shareholder register.”
Placement details
The placement will comprise the issue of 25 million fully paid ordinary shares at an issue price of A$0.29 per new share to institutional and sophisticated investors.
Pursuant to the placement, more than 80% of the new shares were placed with institutional investors.
The issue price represented a discount of 10.8% to K2F’s last close on April 15 and a 9.0% discount to the 15 trading day VWAP of A$0.3188 per share.
Settlement of the placement is expected to be completed on or around Tuesday, April 27, 2021.
Use of proceeds
The total proceeds of A$7.25 million will be used as follows:
- Potential acquisitions = A$3 million;
- Sales and marketing = A$1.25 million;
- Product development = A$2 million; and
- Operational costs/working capital = A$1 million.
Argonaut acted as lead managers to the placement.