National Stock Exchange of Australia raises $1.3m
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The news: The National Stock Exchange of Australia (NSX) has raised $1.3 million as part of a capital raise to provide working capital for the company.
The numbers: While the raise fell short of its goal of $2.85 million, it had noted in its prospectus that it expected to raise about $1.1 million.
The placement of 45,200,000 shares at an issue price of 2.5 cents was to existing and new shareholders but none were existing substantial holders.
NSX shares last closed at 2.4 cents.
The context: In its prospectus, NSX said the company was looking to increase the number of issuers listed on the exchange but there was risk that increased business development activities “may take longer achieve the optimal outcome and to move the company to a cash flow positive position”.
Last year, the NSX botched an earlier capital rise due to negotiating with the regulator after breaching its compliance obligations under the Corporations Act.
The bourse has been positioning itself as a market alternative to the ASX for small cap companies looking for liquidity.
