Global network as a service provider, Megaport (ASX:MP1), will raise up to $50 million in new equity via a fully underwritten placement.
They will also seek up to a further $10 million via a Share Purchase Plan following the capital raising.
They plan to expand into new locations and new markets and fund innovation and development of new technology.
The deal has been priced at $4 and will be managed by RBC Capital Markets and Morgans.
Megaport founder and chairman Bevan Slattery has agreed to offer up to 5 million shares.
Megaport (ASX:MP1) is currently in a trading halt - it last traded at $4.20.