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Ike announces details of $1.3m capital raising

Press Release – BusinessDesk

Sept. 6 (BusinessDesk) – IkeGPS, the laser measurement toolmaker, has released the details for its $1.3 million capital raising through a share purchase plan for existing shareholders.Ike announces details of $1.3m capital raising for NZ shareholders

By Sophie Boot

Sept. 6 (BusinessDesk) – IkeGPS, the laser measurement toolmaker, has released the details for its $1.3 million capital raising through a share purchase plan for existing shareholders.

The company flagged the plan last month, when it raised $3.7 million in an oversubscribed placement to Australian and New Zealand institutional and wholesale investors. That raising was priced at 29 cents per share, and the share purchase plan will be priced the same, Ike said.

New Zealand shareholders as of Aug. 31 will be invited to subscribe for up to $15,000 in new fully paid ordinary shares, the company said. The shares last traded at 28 cents, and have fallen 28 percent this year.

Ike has previously said the proceeds of the two raisings will be used to fund its working capital requirement for the coming 12 to 18 months.

“This working capital requirement is a function of delivering hardware products and selling multi-year subscription software with potential timing differences on large enterprise deals,” it said in August.

The Wellington-based company posted a $10.7 million loss for the year ended March 31, compared to a loss of $8.8 million a year earlier, with revenue dropping 36 percent to $5.8 million.

The drop reflected a weaker first half caused by “several one-off headwinds”, which was followed by a return to growth in the second half, the company said. IkeGPS has projected a return to growth in 2018, forecasting more than 40 percent sales growth of its Ike4 units, more than 50 percent growth for new sales of its Spike units, and cash breakeven in the year.
ENDS

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