Rakon to raise another $21.1m

Rakon, the maker of crystal oscillators used in navigation systems and mobile phones, said shareholders applied for $21.1 million of stocks under its Share Purchase Plan, bringing its total capital raising to about $86 million.

The company had aimed to raise $20 million under he SPP and said it will allow the small over-subscription without scaling. It raised $65 million in a placement at a deep discount to fund the expansion of its Chinese manufacturing operations. Some 18.3 million shares will be issued at $1.15 apiece, the same price offered in the placement.

Rakon has “substantial earnings growth opportunities in front of us,” chief executive Brent Robinson said in a statement.

“We now have the platform to swiftly proceed with planned investment into China to secure the opportunities and maximise returns for all shareholders.”

Some $30 million of Rakon’s new capital injection will be used for the first construction stage of a new Chinese manufacturing factory with joint venture partner Timemaker.

Additional funds will be used to repay debt and settle its outstanding $6.3 million deferred consideration with its Chinese partner.

The shares rose 5 cents to $1.25 yesterday.

Businesswire.co.nz

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