SYDNEY: Family Zone Cyber Safety Ltd has announced $20 million capital raising and the launch of a $2 million share purchase plan offer.
Family Zone Cyber Safety Ltd has received binding commitments to raise $20 million before costs through a placement of 45.454 million new fully paid ordinary shares at an issue price of $0.44 per Share.
The Company’s record sales and collections in the June and September 2020 quarters, has provided strong support for and validation of the Company’s universal cyber safety platform, business model and growth strategy.
Net proceeds from the Placement will be principally used to fund the acceleration of the Company’s growth strategy in existing markets as well as expansion into new markets.
To support growth funds will be allocated to expanding the Company’s engineering teams, back office systems, structures and personnel to ensure a world class product and delivery.
The Placement price of $0.44 represents a 4.3% discount to the last closing price on 21 October 2020 of $0.46 and an 8.8% discount to the 15-day VWAP of $0.4823 per Share. Argonaut Securities Pty Limited and Shaw and Partners Limited acted as joint lead manager to the Placement.
The Shares issued under the Placement will rank equally with existing Shares on issue. The Company will issue the Placement Shares under its existing placement capacity, without the need for Shareholder approvals, with 12.282 million Shares issued under the Company’s Listing Rule 7.1 capacity and 33.171 million Shares issued under the Company’s Listing Rule 7.1 A capacity.
The Company’s cash balance as at 30 September 2020 was $8.7 million and with proceeds of the Placement will exceed $28 million. With this strong cash position and growing recurring revenues the Company is well funded and positioned to invest in the acceleration of its growth strategy.
Family Zone Cyber Safety Ltd is launching a share purchase plan offer to existing eligible shareholders who have a registered address in Australia and New Zealand to raise a further $2 million.
Participation in the share purchase plan (SPP) Offer is optional. The SPP Offer provides each eligible shareholder with the opportunity to apply for up to $30,000 worth of new Shares at the same issue price as the Placement being $0.44 per Share.
The Company is targeting to raise $2 million under the SPP Offer. The new Shares issued under the SPP Offer will rank equally with the existing Family Zone Shares on issue.
Family Zone is an ASX listed technology company focused on cyber safety. Meeting a growing demand to keep kids safe online and manage digital lifestyles, Family Zone has developed unique and innovative cloud-based solutions, which combine Australian innovation with leading global technology.
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