GeoOp brings on two Australian investors in $2.4 mln placement

Thursday 24th September 2015

GeoOp, the workforce management app developer, has raised $2.4 million in a private placement that brings on two new Australian investors, whose networks it says will open doors across the Tasman.

The Auckland-based software company sold 5.11 million shares and 1.7 million warrants at 48 cents apiece. Among the participants was Australian small-cap investor Ryder Capital, which will take a 9.6 percent stake in GeoOp, and Kestrel Capital, an Australian venture capital investor that has a stake in New Zealand's TruTest Group.

"The new investors in the placement will provide Geo with patient expansion capital, while broadening and deepening Geo's investor base," the company said in a statement. "Geo will also be able to leverage the new investors' market and industry networks, where appropriate, to assist Geo achieve its medium and longer term strategic objectives."

The NZAX-listed shares last traded at 44 cents, and have gained 19 percent this year. In June, GeoOp said it plans to apply to NZX to leave the NZAX and join the stock market's main board, having earlier flagged plans to raise new capital.

The company also plans to raise funds from existing investors through a share purchase plan at the same price.

BusinessDesk.co.nz

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