Halo Technologies Holdings Ltd has announced a renounceable pro rata rights issue aiming to raise up to $11 million at $0.024 per share, partially underwritten by Lodge Corporate Pty Ltd. The capital raise will support the company’s UK market entry, local growth, and ongoing software development.
- Renounceable rights issue offering 3.56 new shares per existing share at $0.024
- Target raise of approximately $11 million, partially underwritten by Lodge Corporate
- Funds allocated to UK expansion, local business growth, recent acquisition replenishment, and software development
- Offer open to eligible shareholders in Australia and New Zealand, excluding US persons
- Potential dilution for non-participating shareholders and impact on company control depending on subscription
Capital Raise Overview
Halo Technologies Holdings Ltd (ASX, HAL), a fintech company specializing in integrated global equities research and investment software, has launched a renounceable pro rata rights issue to raise up to $11 million. Eligible shareholders in Australia and New Zealand are invited to subscribe for 3.56 new shares for every share held at an issue price of $0.024 per share. The offer is partially underwritten by Lodge Corporate Pty Ltd, providing a degree of certainty to the capital raising.
Strategic Use of Funds
The funds raised will be deployed to support several key initiatives. Approximately $2 million will replenish cash used for the recent acquisition of HALO Invest, the company’s UK-based subsidiary. Working capital will be allocated to local Australian business growth ($1 million) and UK business growth ($3 million), reflecting HALO’s strategic push into the larger UK market following regulatory approval from the Financial Conduct Authority. Additional funds will support further international expansion and ongoing software development, underpinning HALO’s ambition to enhance its flagship HALO Global Research and Investment Software Solution.
Offer Mechanics and Shareholder Impact
The rights issue is renounceable, allowing shareholders to trade their rights on the ASX until 15 September 2025. The offer closes on 22 September 2025. Shareholders who do not participate risk dilution of their holdings. The company currently has approximately 128.6 million shares on issue, with the rights issue potentially increasing this to nearly 587 million shares if fully subscribed. The largest substantial shareholder, Matthew Roberts Holdings Pty Ltd, has committed to take up 90 million new shares, representing about 16.36% of the offer.
Risks and Governance
Halo’s offer document outlines a comprehensive set of risks, including competitive pressures in the wealth management sector, operational risks related to technology and key personnel, regulatory compliance challenges, and market risks such as share price volatility and liquidity constraints. The offer is partially underwritten with termination clauses protecting the underwriter against material adverse changes. Directors and key management have interests aligned with shareholders, with participation in the offer expected from major insiders.
Outlook
This capital raise is a critical step for Halo Technologies as it seeks to consolidate its position in Australia while accelerating growth in the UK and other international markets. The success of the rights issue and subsequent deployment of funds will be closely watched by investors, particularly given the speculative nature of the investment and the dilution risk for non-participating shareholders.
Bottom Line?
Halo’s $11 million rights issue sets the stage for its UK expansion, but subscription levels and execution will determine the next phase.
Questions in the middle?
- Will the rights issue achieve full subscription or rely heavily on underwriting?
- How will the increased share capital affect Halo’s share price and liquidity post-raise?
- What are the company’s key milestones and timelines for UK market growth following the capital raise?