FirstWave Cloud Technology raises $5.9M

The Australian cyber-security company announced that it would be undertaking an $11.4 million entitlement offer and a $3.5 million institutional placement towards achieving its goal of becoming a leading cybersecurity company

Australia’s FirstWave Cloud Technology (FCT) has already completed its institutional placement and the institutional component of its entitlement offer.

Yesterday, the cyber-security company announced that it would be undertaking an $11.4 million entitlement offer and a $3.5 million institutional placement to support its strategy to become a leading cybersecurity company.

The money will also go towards FirstWave’s goal to be cash flow break-even by December 2022.

The company today stated that it has already raised $5.9 million through the issue of approximately 131.2 million shares at a price of 4.5 cents each.

These shares are expected to be allocated on May 29 and begin trading on the ASX on June 1.

We are delighted with the strong support received from existing shareholders eligible to participate in the placement and institutional entitlement offer and we welcome a number of new institutional and sophisticated shareholders to FirstWave, Executive Chairman John Grant said.

With the placement and institutional entitlement offer successfully completed and our upcoming retail entitlement offer fully underwritten, the raise has been very successful and our company will have the runaway it needs to execute on its forward plan, he added.

FirstWave will now undertake the retail component of the entitlement offer to raise an additional $9 million. Shares will also be priced at 4.5 cents each.

This retail entitlement offer will open on May 28 and close on June 9. Shares will then be allocated on June 16 and can begin trading on the ASX on June 17.

FirstWave is up a healthy 25.9 per cent and shares are trading for 6.8 cents each at 12:55 pm AEST.

Risk Warning:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

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