Covata Limited
(ASX:CVT) has announced that it has secured commitments for a strategic equity placement from prominent US and Asia Pacific funds.
The company says the commitments are for almost $58 million worth of fully paid ordinary shares (at $0.23 per share), which will raise additional capital of $13.3 million.
Covata also says it has increased the percentage holdings of its two top shareholders, Fidelity International and TPG Telecom (to 14.49% and 9.91% respectively).
The company’s CEO, Trent Telford, says that, Covata remains focused on driving revenue from its Telco, Government and Ciso partnerships, and this equity placement affords runway to achieve this.
Covata reported a net loss of $6.9 million at 31 December 2015.
