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IkeGPS details $3m share sale

NZN 29/08/2016 Sophie Boot

IkeGPS, the laser measurement toolmaker, has announced the timing of its planned $3 million share purchase plan.

The company raised $5.25m earlier this month through placing more than 8 million shares at 60 cents per share, and said at the time that it was planning to raise a further $3m.

On Tuesday, ikeGPS said it would look to sell about 5 million shares at the same price to people who held the stock at 5pm on Monday, and each holder could buy as much as $15,000 of new shares, with the placement intended to close on September 20.

IkeGPS wants to be dual-listed on the Australian Securities Exchange, and said it anticipates that being completed on November 8, within 90 days of the placement being completed.

The Wellington-based company will use the money raised to further expand sales and marketing in the United States and the wider international market, to develop mobile apps to support customer needs and for working capital.

"The successful placement is a demonstration of support for the growth plans of ikeGPS and the potential for our products," chairman Rick Christie said.

The equity would be used to provide ikeGPS with increased capacity to expand and accelerate sales and marketing of its IKE4 and mobile solutions, he said.

In the year ended March 31, ikeGPS more than doubled sales to $9.2m but its net loss widened to $8.8m from $5.1m a year earlier.

Shares in ikeGPS last traded at 61 cents, down 12.9 per cent since the start of the year.

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