Identitii Limited - Rights Issue Closure and Shortfall Notification - 9 July 2024
ID8 (ID8) Share Update July 2024 Monday 8th
Identitii Limited Announces Rights Issue Closure and Shortfall Notification
Identitii Limited (ASX:ID8) has announced the closure of its recent Rights Issue, raising $1,659,445 before costs, with a shortfall balance of $491,745.
Instant Summary:
- Rights Issue closed on 4 July 2024.
- Raised $1,659,445 before costs.
- Shortfall balance of $491,745.
- Chairman and Non-Executive Directors took up full entitlements.
- CEO took up 56% of his entitlement.
- Pro-rata non-renounceable entitlement issue at $0.01 per New Share.
- 165,944,526 New Shares to be issued on 11 July 2024.
Rights Issue Details
Identitii Limited (ASX:ID8) recently concluded its Rights Issue on 4 July 2024, successfully raising $1,659,445 before costs. The Rights Issue was a pro-rata non-renounceable entitlement issue, offering one New Share for every two existing Shares held by eligible shareholders on the Record Date, at an issue price of $0.01 per New Share.
The total number of shares on offer was 215,119,000, out of which 75,944,526 shares were applied for. The underwritten amount was 90,000,000 shares, leaving a remaining shortfall of 49,174,474 shares.
Participation and Allotment
Key company figures, including Chairman Tim Phillipps, Non-Executive Directors Rhyll Gardner and Simon Griffin, took up their full entitlements. CEO John Rayment took up 56% of his entitlement. The company will issue and allot 165,944,526 New Shares on Thursday, 11 July 2024, and expects the remaining shortfall to be placed subsequently.
CEO's Comments and Future Plans
Commenting on the announcement, CEO John Rayment expressed his gratitude to the shareholders who participated in the Rights Issue and acknowledged their ongoing support. He stated, 'Capital raised via this Rights Issue, together with expected revenue plus our annual R&D Tax Refund, will extend the Company's runway, with expected Shortfall placement further extending this.'
The Shortfall Offer is a separate offer and will remain open for up to three months following the Closing Date. The issue price for each Share to be issued under the Shortfall Offer shall be $0.01, the same price at which Shares were offered under the Rights Issue.
Use of Funds
Funds raised under the Rights Issue, after costs, will be used for working capital, including closing deals in contract negotiation, pursuing technology partnership opportunities to acquire new customers at scale, and capitalizing on validated opportunities in the data sharing space.
The successful closure of the Rights Issue and the funds raised will provide Identitii Limited with the necessary capital to pursue its strategic goals. This development is likely to have a positive impact on the company's stock as it demonstrates strong shareholder support and a clear plan for future growth. However, the shortfall indicates that there may be some investor hesitation, which could moderate the overall positive impact.
Investor Reaction:
Investors and analysts have shown mixed reactions. While the successful raising of funds is seen as a positive step, the shortfall balance has raised some concerns about the level of investor confidence. Analysts will be closely watching how the company utilizes the raised capital and addresses the shortfall in the coming months.
Conclusion:
Investors should keep an eye on Identitii Limited's progress in utilizing the raised funds for strategic initiatives and closing the shortfall. The company's ability to execute its plans effectively will be crucial in maintaining and boosting investor confidence. Stay informed on Identitii's developments and consider the potential long-term impacts on your investment portfolio.