The Audinate Group Ltd (ASX: AD8) share price has returned from its trading halt and pushed higher this morning after updating the market on its capital raising.
At the time of writing the shares of the world-leading supplier of digital audio networking for the professional AV industry are up over 6% to $7.90.
What did Audinate announce?
This morning the company revealed that it has successfully raised $20 million through a placement to professional and sophisticated investors and will now seek to raise up to a further $4 million via a share purchase plan to all existing eligible shareholders.
Audinate raised the funds at a price of $7.00 per share, which represented a 5.9% discount to the last close price of $7.44 and a 6.3% discount to the 10-day VWAP of $7.47.
Audinate's chairman, David Krall, said: "We are very pleased with the success of the Institutional Placement which was strongly supported by a group of high-quality existing and new investors. We are grateful for the support from our existing shareholders and welcome a number of new investors onto the Audinate register. Eligible retail shareholders will also have an opportunity to participate in the Equity Raising through the Share Purchase Plan."
What are the funds for?
Management advised that it intends to use the proceeds of the offer to expand its global sales penetration, accelerate recent product initiatives, develop its next generation Dante platform, and provide additional balance sheet strength and flexibility to support its growth.
This includes expanding the product range of Dante AVIO adapters and Dante AV, shortening the time-frame for Dante software implementations, developing the next generation Dante "IOT" software endpoints, and the continuation of the extension of the software platform beyond the Dante Domain manager.
What are the terms of the share purchase plan?
All existing eligible investors have the opportunity to subscribe for new shares up to a maximum of 2,142 shares ($15,000) per investor under the share purchase plan at $7.00 per share. The share purchase plan will be capped at $4 million.
To be eligible you need to have been on the share registry when its shares were halted on Wednesday June 5.
Elsewhere in the tech sector today, the Afterpay Touch Group Ltd (ASX: APT) share price has dropped lower following the release of a business update and the Altium Limited (ASX: ALU) share price has edged higher on no new.
