Swift Media Ltd (ASX:SW1) directors have shown their support for the company’s new growth strategy focused on the target verticals of resources, aged care and health & wellness through participating in a placement.
Non-executive director Robert Sofoulis and non-executive chairman Darren Smorgon acquired placement shares at 14.5 cents each after their participation was approved at a general meeting in December 2, 2019.
Soufoulis acquired 2,241,379 shares and now holds almost 66.115 million in two indirect holdings.
For Smorgon, who was recently elected as chairman, the acquisition of 517,541 shares in an indirect interest was his first purchase of fully paid ordinary shares in the company.
Placement and SPP
In October the company received firm commitments to raise $1.559 million through a placement of 10,751,724 new shares at 14.5 cents each to institutional and professional investors.
Swift Media subsequently invited eligible shareholders to participate in a share purchase plan on the same terms as the placement with the intention to raise up to $1 million.
Proceeds of the Placement and SPP will primarily be used to strengthen the company's financial position as it transitions to the new growth strategy focused on building scale and profitability in the three verticals.
Funds will also be used to further Swift’s aged care strategy and for working capital purposes.
New debt facility
The company last month entered a binding term sheet for a new debt facility to raise $8 million to fund its growth strategy and strengthen the balance sheet.
Under the term sheet, PURE Asset Management Ltd will provide Swift Media up to $8 million of loan finance in a four-year facility.
At the time CEO Pippa Leary said, “We are pleased to secure these loan funds to simplify and strengthen Swift’s balance sheet as we execute our new focused growth strategy.
“The funds will be used to retire existing debt facilities, for working capital purposes and to leverage our leadership in the mining and resources vertical and bringing profitable and scalable new products to the aged care market.”