Knosys Limited (ASX: KNO) is pleased to announce that the Company has received firm commitments to raise $3.0 million (before costs) in an oversubscribed share placement.
Placement:
Knosys welcomes the expansion of its shareholder base with the inclusion of a microcap fund and a number of sophisticated and professional investors as a result of a $3.0 million oversubscribed share placement (the Placement). The Lead Manager to the Placement was Bell Potter Securities Limited.
The $3.0 million Placement will result in the issue of 21,428,571 fully paid ordinary shares at an issue price of $0.14 per share. The issue price represents an 8.2% discount to the 30-day VWAP.
The Placement will be completed in two tranches:
Tranche 1: 20,778,571 ordinary shares to raise approximately $2.9m will be issued under the Company’s existing placement capacity, with 14,883,550 shares issued under Listing Rule 7.1A and 5,895,021 shares issued under Listing Rule 7.1. The Tranche 1 Placement shares are expected to settle on Wednesday, 23rd of December, 2020 and scheduled to be issued on Thursday, 24th of December, 2020.
Tranche 2: 650,000 ordinary shares to raise approximately $0.1m. The issue of these shares to directors will be subject to approval by shareholders at a general meeting. Shareholders’ approval for the issue to directors will be sought at the same general meeting to be convened to approve the issue of shares in relation to the GreenOrbit acquisition announced to ASX on Tuesday, 15th of December, 2020.
Application of Funds:
The funds raised from the Placement will be used to to accelerate growth in the combined Knosys and GreenOrbit businesses, funding increased investment in sales and marketing, product development and IT infrastructure. Funds raised will also be used to fund transaction costs related to the GreenOrbit acquisition and for general working capital requirements associated with the expanded local and overseas operations of the Knosys group.
KNO Managing Director, Mr. John Thompson said, “We are delighted to have received strong demand for the Placement from our new and existing investors. We are particularly pleased to see a microcap fund investing in Knosys. This support gives our group additional confidence to pursue its growth plans.”
“The funds raised from this capital raising will enable the Company to recruit additional business development and marketing resources to exploit the wider product solutions to be offered by our expanded business. We will also be appropriately resourced to proceed with our plans to develop market leading solutions, combining knowledge management and intranet services and products which can now be offered to customers globally.”
I dont hold but am interested, though have to be upfront and say I dont really understand what they do. What is knowledge IQ?
otherwise all the metrics seem to be tracking in the right direction, and is not overly priced compared to peers. I note that although they describe themselves as SaaS most of their revenue is lumpy, related to contract wins/renewals and mostly recognised in the previous quarter (see most recent 4C) which can falsely suggest that they are profitable.
