IkeGPS shares halted pending placement of shares

Friday 8th January 2016

IkeGPS, the laser measurement tool developer, had its stock halted pending a placement of shares to some institutional and wholesale investors.

The Wellington-based company said it received a firm expression of interest "from an undisclosed offshore investor" to invest $500,000 buying shares at 81 cents apiece, a 15 percent premium to the last traded price. IkeGPS said it wants to offer selected institutional and wholesale shareholders an opportunity to participate on the same terms.

IkeGPS shares last traded at 70 cents, valuing the company at $35 million, and have declined 14 percent in the past 12 months.

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.

BusinessDesk.co.nz

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