Commoditel buys 20,000 Vodafone customers

Stuart Corner
Friday, 13 October 2006 15:09

IT Industry - Deals

Commoditel is raising $4.5 million in new capital to fund the acquisition, reduce debt and ramp up marketing activities. The capital raising has been managed by Cygnet Capital Pty Ltd, specialists in small company funding, who also will be appointed corporate advisers to Commoditel.

The funding package is comprised of a $2 million share placement to sophisticated investors and a $2.5 million redeemable convertible ($0.01) note issue to sophisticated investors, with a $1.75m subscription by Geoff Lord's Belgravia Group and a $400,000 subscription from Perth based investor, Craig Burton.

The balance of the convertible note has been placed with an institutional investor. The $2 million share placement has been priced at 0.7 cents per share. 73,600,000 shares have been placed using the Company's 15 percent capacity, raising $515,200. The balance of 212,400,000 shares which are already committed, are subject to shareholder approval at the forthcoming AGM.