Investorfirst to raise funds; open to acquisition talks
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.
Recommended for you
The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call.
Two national advice businesses have merged to form a leading holistic advice business with $2.5 billion in funds under management.
Insignia Financial has completed its transition of a range of administration and technology functions to SS&C Technologies as it seeks to be a leading wealth manager by 2030.
ASIC has permanently banned a financial adviser after he allegedly concealed information from clients and misused client funds, among other breaches.
