Presentation - Successful Placement Oversubscribed
Sydney, Dec 18, 2020 AEST (ABN Newswire) - Etherstack plc (
ASX:ESK) is pleased to announce it successfully raised AUD $5 million via an institutional Placement with new institutional investment funds and HNW investors (Placement).
Key points:
- Strong support from institutional investors. The Placement was substantially oversubscribed demonstrating the strength of support from the institutional investors; and
- Proceeds of the Placement will provide balance sheet flexibility to:
o Enable and accelerate the pursuit of evolving market opportunities in Government Infrastructure, Defence and Public safety markets in particular those opportunities involving Etherstack's Mission Critical Push to Talk and PTT over satellite solutions;
o Enable and accelerate intellectual property developments needed for success in these market sectors; and
o Strengthen working capital resources.
The Placement was undertaken at an issue price of $0.58 per CDI, representing a 9.4% discount to the closing price on 16 December 2020, a 9.2% discount to the 3 day VWAP and a 11.7% discount to the 5 day VWAP.
The Placement will result in the issue of 8,620,693 new CDIs, with the new CDIs ranking equally with existing CDIs. The Placement CDIs will be issued as single tranche utilising the Company's available Placement capacity under ASX Listing Rule 7.1.
David Deacon, Etherstack CEO noted "The new institutional and HNW investors are a welcome addition to our share register. Their investment demonstrates their belief in what we anticipate will be a very exciting and positive 2021 for Etherstack.
This is the first institutional placement undertaken by the Company since our listing in 2012, which results in a reduced concentration of holdings by the Top 20 holders and greater liquidity in the market.
The monies from this capital raise places Etherstack in a position of strength and will allow us to fulfil both current and anticipated future contracts, whilst continuing to invest in and develop our core capabilities. Initially, the proceeds will be used to facilitate delivery of current milestone projects such as the Australian Defence Contract announced by the Company on 7 December 2020, however more importantly, the additional capital will allow continued pursuit of and delivery of opportunities that may result from the Samsung Global Teaming Agreement announced on 30 June 2020."
To view the investor presentation, please visit:
https://abnnewswire.net/lnk/596U0304
About Etherstack Plc
Etherstack (ASX:ESK) is the world's leading licensor of wireless technologies for the digital LMR industry and the Company develops wireless products for the main digital radio communications standards known as APCO P25, TETRA and DMR. Over the past 25 years, over twenty wireless equipment manufacturers have licensed LMR technologies from Etherstack for use in their products.
MCPTT over LTE is an emerging cellular standard that provides public safety grade PTT (Push-To-Talk) solutions within 4G and 5G cellular networks. Demand for MCPTT services and equipment by telecommunications carriers and end user agencies has been steadily growing in the past few years and is expected to rise rapidly over the next 36-48 months.
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