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IkeGPS raises $900,000 in institutional placement, still looking at US listing

Monday 11th January 2016

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IkeGPS Group has raised $900,000 from three institutional investors to fund expansion in the US market, where the laser measurement tool developer is considering a secondary listing. 

The placement came after a foreign institution offered to invest $500,000 and two existing IkeGPS shareholders put up another $400,000, the Wellington-based company said in a statement. The shares were sold at 81 cents apiece, a 15 percent premium to the last traded price of 70 cents, expanding the number of share on issue by about 1.1 million, or 2.21 percent, to 52.2 million. IkeGPS will use the proceeds "specifically to drive development in the United States market," it said.

"As we have stated previously, we are actively assessing our options in the US capital markets, including the potential for a secondary listing there," chief executive Glenn Milnes said. "Our ability to attract capital of this calibre is testament to our growth trajectory and potential to become the measurement platform of choice for targeted industries seeking to collect, analyse and manage their assets." 

The company is foregoing short-term profits to chase long-term international sales growth. As at Sept. 30 it had cash holdings of about $10 million, down from $21 million a year earlier.

In November the company reiterated its view that full-year revenue and other income would triple in 2016. It posted a net loss of $3 million in its first half, as sales jumped 152 percent to $4.3 million.

Last week it said it would stop paying to use the General Electric brand as its own name recognition gains traction, which would improve profit margins.

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