Mobile platform and services provider Syntonic Limited (ASX: SYT) has received binding commitments to raise $5 million in an oversubscribed placement.
The company received overwhelming demand from a large number of new and existing shareholders and sophisticated investors and the company’s Board of Directors elected to increase its original target by accepting oversubscriptions to raise $5 million.
Syntonic CEO and Managing Director Gary Greenbaum said net proceeds of the capital raising will support investment in Syntonic’s global commercialisation activities to accelerate installed base growth in recently-launched countries and expand into new geographies in 2018.
He said the additional funds will further strengthen the company’s balance sheet and support an engaging customer experience during this period of rapid international expansion.
“The straightforward success of this raise reflects confidence in Syntonic’s achievements and expedited capitalisation of new markets, including China, Turkey, Vietnam and others to follow shortly.
“Syntonic is rapidly expanding Freeway’s global installed base, with quarter-over-quarter growth in this key metric of more than 25%. As the installed base grows, increased and ongoing consumer adoption of our sponsored and unlimited data content plans will drive value for customers, carriers and investors.
“We expect this growth to continue as we leverage Syntonic’s first mover advantage beyond the U.S. with deployments of Freeway in Latin America, Southeast Asia, Africa, China and Europe.
“With nearly 90% of mobile subscribers in these countries choosing prepaid data plans, which inherently impose consumer data rationing, we recognise outstanding near-term opportunities to enhance the mobile experience for data-hungry and cost-conscious consumers.
“The capital raised through this placement will bolster Syntonic’s momentum and power to successfully win these new opportunities in 2018.”
CPS Capital Group Pty Ltd acted as Lead Manager to the share placement.
