HUB24 announces $10.6 million capital raising
Investment platform HUB24 is in the process of raising $10.6 million in capital in a bid to support growth and innovation.
Targeting sophisticated and professional investors, the directors of the company have made the placement at a fixed issue price of $1.30 per share, with the first tranche of 5,837,020 ordinary shares raising approximately $7.6 million.
The first tranche is expected to be settled on 10 October, with the issue and allotment of the placement of shares expected to occur on 11 October. This initial tranche was made utilising the company’s existing 15 per cent placement capacity under ASX Listing Rule 7.1 and, therefore, does not require shareholder approval.
The second tranche of 2,307,692 ordinary shares raising $3.0 million will be made conditional upon shareholder approval at the company’s annual general meeting in November.
“We are pleased to have continuing strong support from existing large institutional shareholders and are equally pleased to welcome several new institutions to our register,” HUB24 chief executive Andrew Alcock said.
According to Alcock, the platform has grown funds under administration by 36 per cent in the last quarter, with a total of $527 million invested as at 30 September.
As a result of the capital raising, Alcock said the company has sufficient working capital and cash to meet upcoming net tangible asset requirements for IDPS operators and custodial service providers.
The capital raising announcement follows HUB24’s $5.8 million loss in its 2012 results, with Alcock pointing to operating costs and the divestment of its stockbroking business back in February as main drivers.
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