Vonex (ASX:VN8) raises $1.4M to fund future growth plans

• Telecommunications provider Vonex (VN8) has completed its institutional placement, raising a total $1.4 million to fund future growth initiatives
• Under the terms of the financing, the company issued a total of 14,736,843 shares at a price of 9.5 cents each
• Such a price represents a 13.6 per cent discount compared to the company’s last closing price — 11 cents per share — on June 22
• The proceeds will be used to fund expanded marketing activities, as well as future acquisitions and the build-out of cross-selling opportunities
• Vonex shares are grey today, priced at 11 cents each

Telecommunications provider Vonex (VN8) has completed its institutional placement, raising a total $1.4 million to fund future growth initiatives.

Headquartered in Perth, Western Australia, the company offers mobile, internet, traditional fixed lines and VoIP services to a primary base of small and medium-sized enterprise customers. In addition, Vonex develops new technologies for the wider telecommunications industry, among which is its cloud-hosted private branch exchange phone system.

Under the terms of the placement, Vonex issued a total of 14,736,843 shares at a price of 9.5 cents each. This price represents a 13.6 per cent discount compared to the company’s last closing price on June 22, 2020, of 11 cents.

All of the shares offered through the placement were acquired by a number of institutional investors across Australia and New Zealand, and will rank equally with Vonex’s existing fully-paid ordinary shares.

The proceeds will be used to bolster the company’s balance sheet in support of future growth initiatives. These are expected to include extended marketing efforts, as well as acquisitions and the build-out of cross-selling opportunities.

Matt Fahey, Managing Director of Vonex, said he is delighted to welcome several new institutional investors to support the company at what is an exciting stage.

“Our strategy has positioned us well to scale up rapidly and further develop market share in the attractive market for SME telco services in Australia.

“The capital we raise through this placement will empower us to expand our outbound marketing initiatives and continue to execute our merger and acquisition strategy, the success of which we have proven through our successful integration of 2SG Wholesale,” he added.

Vonex shares are grey today, priced at 11 cents each at 11:23 am AEST.