Tech: 3 more small caps complete capital raisings as markets take a dive
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Local investors were forced to brace for impact this morning, after a brutal session on US markets which saw the Dow Jones Index slump by more than 7 per cent.
But prior to the carnage, Stockhead counted three more small caps that were able to complete funding rounds in more supportive markets.
The three month rally in markets in the wake of huge stimulus measures have helped free up significant liquidity in small-cap equity markets, with many companies taking advantage of the conditions to top up their balance sheets.
Among the cap-raise announcements was cyber-security company FirstWave Cloud Technology (ASX:FCT), which confirmed it raised $9m from a retail entitlement offer priced at 4.5c per share.
A total of 921 eligible shareholders took up the rights offer, collectively contributing $7.3m. The remaining $1.7m will be taken up by sub-underwriters because the offer was fully underwritten.
The deal follows a $5.9m institutional placement announced on May 21, for a total raise of $14.9m. Shares in FirstWave got caught up in this morning’s selloff to fall more than 6 per cent to 8.4c.
That’s still a significant premium to the offer price, but the stock remains well off its 12-month highs above 25c reached last July.
Another cybersecurity company, archTIS (ASX:AR9), also raised capital from its retail shareholder base with the completion of a $590,750 share purchase plan at 5.5c per share. It follows a $1.6m placement to sophisticated shareholders that was completed in May.
archTIS said it would use the capital to pursue growth opportunities for its Kojensi Platform — a secure information-sharing service with a focus on government and defence clients.
And energy technology company Hazer Group (ASX:HZR) also got in on the action, with the completion of an $8.4m placement to sophisticated and institutional investors at 42c per share.
The issue price marked a 26.3 per cent discount to yesterday’s closing price, but the stock fell by more than 15 per cent this morning amid the broader market selloff.