Codeifai Secures $570K Placement at 42% Discount with Options Attached
Codeifai Limited has locked in $570,000 through a discounted share placement, aiming to fuel its digital platform growth and strategic initiatives.
- Placement of 98.4 million shares at A$0.0058 each
- 42% discount to last closing price
- Options issued alongside shares, pending shareholder approval
- Funds allocated to software development, marketing, debt repayment, and acquisitions
- Oakley Capital leads placement with 6% fee
Capital Raise Details
Codeifai Limited (ASX, CDE), a player in digital brand solutions, has announced a binding commitment for a $570,000 placement. The company will issue approximately 98.4 million new shares at a discounted price of A$0.0058 per share, representing a 42% markdown from the last closing price of A$0.01. This move is designed to bolster the company’s balance sheet and support its ongoing growth strategy.
The placement shares will rank equally with existing shares, ensuring new investors have the same rights. Additionally, each share will be accompanied by one option exercisable at A$0.01, valid for three years, subject to shareholder approval at an upcoming general meeting. This sweetener aims to provide investors with potential upside as the company executes its plans.
Strategic Use of Funds
Proceeds from the placement will be directed towards advancing Codeifai’s Digital First Strategy, including the technical development of its Connect and ConnectQR platforms. The company also plans to invest in business development, search engine optimisation, marketing, and research and development. Importantly, some funds will be allocated to debt repayment and general working capital, which could improve financial flexibility.
Codeifai’s ambitions extend to potential acquisitions, signaling a desire to expand its footprint in the digital brand solutions sector. This capital raise, therefore, serves as a critical enabler for both organic growth and strategic expansion.
Market and Investor Implications
The 42% discount to the last closing price may raise eyebrows, reflecting either a strategic pricing decision to attract sophisticated investors quickly or underlying market pressures. Oakley Capital acted as lead manager for the placement and will receive a 6% fee, underscoring the transaction’s complexity and importance.
Shareholders will soon vote on the option issuance, a key step that will determine the final structure of this capital raise. The market will be watching closely to see how these developments influence Codeifai’s share price and investor sentiment in the coming weeks.
Bottom Line?
Codeifai’s discounted placement and attached options set the stage for a pivotal growth phase; pending shareholder approval and market response.
Questions in the middle?
- Will shareholders approve the attached options at the upcoming meeting?
- How will the market react to the significant discount on the placement shares?
- What specific acquisitions is Codeifai targeting with the new capital?
