CommSoft cancels rights issue

The non-renounceable issue was announced at the end of January. It was designed to raise around A$6.2 million, with one new share being offered for every share held at A5 cents per share.

The proceeds were earmarked for working capital requirements and improving distribution channels for the company's telecommunication software products.

At the time of the announcement the company's shares were trading around NZ6 cents a share but have since slipped to below NZ4 cents per share.

The company has previously noted that the idea of a rights issue was raised by shareholders at meetings in November, when they indicated they would view such an issue positively.

However it announced last week that the issue was under review and now says it has been withdrawn.

CommSoft is considering whether an alternative rights issue may be undertaken and says it expects to make a further announcement within the next week.

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