Dubber shares tank over 70% amid capital raise
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The news: Dubber shares have tanked over 70% after its month and a half long suspension from trading lifted today. The company also opened the retail component of its capital raise aimed to recoup lost company funds.
The numbers: In early trading on the ASX, Dubber shares plummeted 71.8% to $0.06 after trading had been suspended since 29 February due to the company investigating $26.6 million in lost funds.
The company today also announced that the retail component of its capital raise had opened, offering one new share for every one existing share held by eligible shareholders at the issue price of $0.05 per new share. The offer closes 3 May.
The context: The capital raise sought to raise $24.06 million consisting of a fully underwritten institutional placement of $3.14 million along with an institutional and retail entitlement offer ($20.92 million).
Last week, the institutional component 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%.
This means the retail offer will look to raise $16.4 million to meet its $20.92 million combined retail and institutional entitlement target.
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 last week 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.
The source: ASX announcement
