Investorfirst to raise funds; open to acquisition talks

australian-securities-exchange/

23 July 2012
| By Staff |
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HUB24's parent company Investorfirst has announced it will continue with an offer to shareholders to purchase additional shares in the company as it looks to raise $10 million, rather than pursuing an unsolicited third party proposal.

The third part offer (received on 17 July) came in the form of an initial verbal approach and suggested a capital injection at a premium to the non-renounceable rights issue offer price of $0.15.

However, it became apparent the terms would be less favourable to Investorfirst than the terms of the rights offer, the company said in a statement to the Australian Securities Exchange on Friday.

"Not only was it highly conditional (including being subject to unspecified conditions) and incomplete - therefore making it very uncertain - the proposed pricing had changed," the statement read.

Investorfirst said it would remain open to further discussions with the third party to investigate aspects of its proposal, including a possible acquisition from that party.

The pro-rata rights issue will be on the basis of one Investorfirst share for every one share held on the record date. The $0.15 per share offer price represents a 51.6 per cent discount to the 30-day volume weighted average price, the company stated.

"On a fully subscribed basis, or following any board agreed dispersion strategy, the issue would raise a total of up to A$10,298,164 before costs," the company stated.

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