Dubber closes insto component of capital raise to recoup misused funds
Make us a preferred source
Make us a preferred source on Google
The news: Dubber has completed the institutional component of its capital raise to help recoup the $26.6 million in lost company funds.
The numbers: Melbourne-based Dubber said its institutional entitlement offer raised approximately $4.52 million through the issue of around 90.4 million new shares at a cut price of 5 cents per share.
However, the take-up rate from eligible institutional shareholders was about 47.2%.
Another $3.14 million was raised through the issue of around 62.76 million new shares under a fully underwritten placement, which met the company's target.
It noted that the placement and institutional shortfall were allocated to a range of existing and new institutional investors with no new shares being taken up by the underwriter.
On Wednesday, Dubber released details of its capital raise offer that sought to raise $24.06 million. This included the fully underwritten institutional placement of $3.14 million along with an institutional and retail entitlement offer, which sought to raise around $20.92 million. This means the retail entitlement offer will look to raise $16.4 million.
The retail entitlement offer opens on 17 April and closes on 3 May.
The context: Dubber said it plans to use funds from the capital raising to cover costs associated with the ongoing investigation by the securities regulator into missing company funds, as well as additional working capital and bringing ordinary business creditors back into normal payment terms.
The company sacked its CEO Steve McGovern on Tuesday with immediate effect after he and a third party trustee were alleged to be involved in the unauthorised use of $26.6 million in missing company funds.
What they said: Dubber chair Neil Wilson said: "This is an important step in restoring confidence in the company and I would like to thank our shareholders for their support during this challenging period".
The source: ASX announcement
