engage:BDR Ltd (ASX:EN1) has received firm commitments from professional and sophisticated investors to raise more than A$2.145 million, before costs, in a strongly oversubscribed share placement.
The placement of 293,921,246 shares at 0.73 cents per share will utilise EN1’s placement capacity under Listing Rule 7.1 (169,282,592 shares) and 7.1A (124,638,654 shares) and the company is not utilising the temporary ASX facility of additional 10% capacity.
This issue price represents an 8.75% discount to last traded price.
The new shares will be issued on or around August 14, 2020, subject to receipt of funds on August 13, 2020, and will rank equally with existing fully paid shares of the company.
Retiring convertible notes
Funds raised will be utilised to retire amortising convertible notes and the company will enter into negotiations with Alto Opportunity Master Fund SPC – Segregated Master Portfolio B to complete the retirement of these notes.
Viriathus Capital Pty Ltd is acting as lead manager to the capital raising.
The capital raising follows the company achieving a 36% increase in year-to-date revenue as of July 31, 2020.
Revenue of A$10.3 million was recorded in the seven months compared to A$7.6 million at July 31, 2019.
engage:BDR also recorded a 4% increase in monthly revenue in July compared to the previous month, at US$904,000 or A$1.27 million.