The Thorney Technologies Ltd (ASX: TEK) share price is up 7.35% in late afternoon trading today. This comes following the company's announcement on its $37 million capital raising plan.
Thorney's shareholders were hit hard by the pandemic panic selling that hit the All Ordinaries Index (ASX: XAO) earlier this year. Thorney's share price dropped more than 50% before bottoming out on 23 March.
Since the March lows, shares are up 157% for a year-to-date gain of 28%. By comparison the All Ords is down 4% so far in 2020.
What does Thorney Technologies do?
After re-listing on 18 January 2017, Thorney Technologies became an investment company focused on technology related investments., often at the pre-IPO level. The company is managed by Thorney Investment Group, a private business, under a long-term investment management agreement.
What moved the Thorney Technologies share price today?
This morning Thorney Technologies announced it had received commitments from institutional, sophisticated and professional investors to raise $27 million via a fully-committed two-tranche placement of ordinary shares at 35 cents per share.
Thorney welcomed Woodson Capital Management LP as a substantial shareholder.
The company also announced its proposal of a non-underwritten $10 million non-renounceable entitlement offer to eligible shareholders, also at 35 cents per share.
Bell Potter Securities Limited is acting as Lead Manager for both offers.
Thorney Technologies Chair Alex Waislitz said:
We are delighted with the support shown by new and existing investors, with bids received well in excess of amounts raised under the Placement. We are pleased to welcome Woodson Capital Management as a substantial shareholder in TEK.
The bulk of the capital raising will be used to invest in technology related companies in Australia and internationally. The company stated it will continue to focus on pre-IPO (initial public offering) opportunities, stating it, "continues to be inundated with exciting and potentially valuable pre-IPO investment opportunities, and the Board intends to continue to be at the forefront of access to these investment opportunities."
The committed placement will be completed in two tranches. The first, approximately $13 million worth, is expected to settle this Thursday 12 November.
The second placement of some $14 million of new shares will be issued subject to Thorney Technologies' shareholders' approval.
