Sharechat Logo

Rakon sells shares in Thinxtra, lifts FY18 guidance

Thursday 12th October 2017

Text too small?

Rakon has sold about a fifth of its shares in start-up investment Thinxtra for A$3 million, which it will use to pay off debt, and lifted its earnings expectations for 2018.

The sale is conditional upon the completion of Thinxtra’s pre-emptive rights process for all shareholders, and is expected to conclude by the end of November, it said. It plans to sell 199,000 shares, leaving it with 785,000 shares in Thinxtra, or 18.3 percent of the company. Rakon will make A$1.8 million gain on the sale before costs, representing a return on initial investment of 257 percent, it said.

Rakon initially invested A$800,000 in the 'internet of things' startup for an 11.4 percent stake in late 2015, which it lifted to 18.1 percent in early 2016. 

The majority of shares have been sold to new Thinxtra shareholders who missed out on the Thinxtra Series-B capital raising, which was recently over-subscribed, and the new shareholders are institutions with a strategic interest in the 'internet of things', it said.

"There may be a demand for Rakon to sell more shares and we will consider that as it arises," chief executive Brent Robinson said. "We remain committed to being a substantial investor in Thinxtra and are positive about the company, the IoT and future returns from our investment." 

In August, Rakon predicted a return to profit in the year ending March 31, 2018, with underlying earnings before interest, tax, depreciation and amortisation of between NZ$9 million and $11 million. Today, it upgraded that to between $10.7 million and $12.7 million, and reiterated its net profit expectation.

Rakon's NZX listed shares last traded at 22 cents, and are unchanged this year.

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report