Australasian Wealth Investments, formerly Merricks Capital has raised $10 million, principally to fund the acquisition of InvestSMART and finalise the partial acquisition of van Eyk Research.
The funds were raised through a placement of 28.6 million shares at $0.35 per share to domestic professional and sophisticated investors, which will also enable an investment management contract to be acquired.
The company had earlier this year announced it would acquire a 49.6% stake in the ordinary shares of van Eyk Research for $13.3 million, which worked out at an acquisition price of 5 x forecast 2014 EBIT.
The company has agreed to increase the entitlement offer to shareholders to raise approximately $13.4 million.
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