Secures Key Institutional Equity Placement
Perth, Nov 20, 2015 AEST (ABN Newswire) - Raya Group Ltd (
ASX:RYG) ("Raya" or "the Company") is pleased to announce that Company has completed a further private placement to a select group of institutional funds and sophisticated investors raising a total of $1,400,000 to progress the proposed acquisition of Xped Holdings Ltd (Xped).
Investment Highlights
- Raya raises $1,400,000 through a key institutional equity placement at A$.035 per share
- Strategically selected institutional investors focusing primarily on long equity positions to join the Company's register
- Key institutional investors to enhance and support company deployment roadmap
"Due to the overwhelming level of interest from the global investment community to date, the Company is extremely pleased to have attracted a technology focused institutional group of investors focusing primarily on long equity positions to its register. We look forward to working closely with these groups as we progress towards finalisation of the Xped transaction"; as noted by the Company's chairman Mr Athan Lekkas.
Raya is currently in the process of finalising the required due diligence on the proposed Xped acquisition, including the preparation and issuing of a prospectus, supporting expert reports and meeting materials, for the purpose of obtaining shareholder approval for the transaction and re-compliance of the Company.
Accordingly, the proceeds and relationships forged by the previous placement (announced on 9 November 2015), coupled with todays announced placement, ensure that the Company is able to successfully complete all necessary and desirable due diligence investigations for both the Xped acquisition and the issue of the prospectus, as well as providing required working capital to completion of the transaction.
The Company foresees completion of the surrounding processes and the readmission and trading of Raya's securities on the ASX to occur by no later than mid March 2016.
Through this placement the Company will issue 40 million shares at a price of A$.035 per ordinary share ("Institutional Placement Price"), based on a 20% discount to the 5 day VWAP (under the Company's available placement capacity). A summary of the anticipated use of proceeds from the completed placements to date (together with existing cash resources) outlined below:
XPED TRANSACTION COSTS
Patent Investigations/Reports $ 150,000
Data Room and other Technology Costs $ 50,000
Experts Reports $ 300,000
Advisory Costs (including Legal) $ 400,000
Prospectus and Raising Fees and Expenses $ 440,000
Regulatory $ 50,000
REHABILITATION LIABILITY
Existing Asset contingency $ 271,000
GENERAL & ADMINISTRATION
Current to completion (March 2016) $ 430,000
WORKING CAPITAL General Company $ 300,000
TOTAL $ 2,391,000
Whilst careful consideration has been taken in the preparation of this budget, as with any budget, intervening events and new circumstances have the potential to affect the ultimate way funds will be applied.
The prospectus raising is expected to be between $3m to $10m (Raising). It is anticipated that the existing shareholders will be afforded a priority entitlement in respect of participation in the Raising and Raya will provide further details as soon as it is able to in respect of the same.
About XPED Ltd
XPED Ltd (ASX:XPE) is an Australian Internet of Things (“IoT”) technology business. Xped has developed revolutionary and patent-protected technology that allows any consumer, regardless of their technical capability, to connect, monitor and control devices and appliances found in our everyday environment. Xped provides technology solutions for Smart Home, Smart Building, and Healthcare.
At Xped, we’re Making Technology Easy Again(TM)
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