Freshtel accelerate UK & US rollout plans

Stuart Corner
Sunday, 25 September 2005 14:15

IT Industry - Deals

Australian VoIP technology company, Freshtel Holdings Limited (ASX: FRE) says it has received firm commitments for 50 million new shares via private placement at $0.22 per share, to raise $11.0m.

It intends to use the funds to rollout its products and services in the UK and US markets, and to continue to develop infrastructure, systems and marketing initiatives in Australia. CEO, Michael Carew, said: "The development of our UK operations is well advanced, with our network deployment on schedule and our commercial trial with a major UK retailer set to commence before the end of this year. The additional funding will also allow us to progress the rollout of our US network and advance the development of key partnerships."

An EGM will be held on 24 October to obtain shareholder approval for the $11m capital raising and also for plans to raise a further $2.2 million through a placement to strategic investors, on or before 24 January 2006.