Netlinkz Ltd (ASX:NET) has raised about $15 million via its fully underwritten 1 for 4.2 entitlement offer.
This includes $1.7 million raised via the institutional component which was completed last month.
The fully underwritten retail component of the offer raised about $13.3 million before costs.
Institutional investor participation
Netlinkz received applications for 176,139,666 new shares at 2.5 cents each from retail shareholders and applications were received from retail shareholders to participate in the shortfall for a further 30,078,484 new shares.
The balance of the shortfall in the retail entitlement offer, being 323,994,124 new shares, has been fully sub-underwritten by Australian institutional investors.
Use of funds
The $15 million raised through the entitlement offer will fund:
➢expansion capital investment in China;
➢general working capital expenditure;
➢repayment of outstanding convertible notes;
➢short term repayment of loan arrangements; and
➢costs of the offer.
Strong third quarter
Netlinkz saw group revenues in the third quarter of financial year 2021 rise 85% to $2.9 million over the corresponding period of 2020 with Asia continuing to lead the growth, particularly China
The company is expecting a stronger fourth quarter of FY21 due to the seasonality of revenue, with a growing proportion coming from recurring revenue.