IkeGPS raises $3.7 million in placement, plans another $1.3 million raise
By Sophie Boot
Aug. 18 (BusinessDesk) - IkeGPS, the laser measurement toolmaker, said it has raised $3.7 million in an oversubscribed
placement to Australian and New Zealand institutional and wholesale investors.
The share placement, which Ike announced earlier this week, was priced at 29 cents per share, a 9 percent discount to
where the shares were trading before they were halted on Aug. 15. The stock has shed 51 percent over the past 12 months.
The company said it intends to offer New Zealand shareholders a share purchase plan to raise up to another $1.3 million
at the same price, with details to come once it has been finalised and approved by NZX.
"IKE intends to use the proceeds of the placement and the SPP to fund its working capital requirement for the coming 12
to 18 months," it said. "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."
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.
(BusinessDesk)
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