South Africa’s diversified digital technology group Etion announced on Wednesday it has raised R27.3 million through the general issue of shares.
Etion won shareholders approval on 7 September 2018 to issue up to 50% of the company’s issued share capital for cash.
The company on Wednesday informed shareholders it has issued 70 million shares at 39 cents a share raising R27.3 million.
The general issue was implemented at a 3.8% discount to the 30 day weighted average traded price of Etion shares for the 30 business days preceding the date that the price of the issue, under the general authority, was agreed.
Etion said the shares were issued to Conexus Capital Growth Fund Trust, which is represented by Clive Douglas Investments, and represents 14.16% of the issued share capital of the business prior to the general issue, and 12.40% after the issue of the shares.
Douglas Investments manages its clients’ funds on a discretionary basis and provides investment exposure across all asset classes, both locally and offshore.
The group said investment by Douglas Investments is intended to strengthen Etion’s thrust into cutting-edge digital security innovation, following its acquisition of cybersecurity specialist, LAWTrust, in June 2018.
Profit growth at Etion halved in the year ending 31 March 2018, underlining tougher operating conditions as some of its large clients either postpone or cancel orders.
The group posted a 50% reduction in headline earnings per share (HEPS) to 7.29 cents a share. HEPS is South Africa’s main profit gauge. For more read: Tough Economic Times Halve SA’s Tech Firm Ansys’ Profit Growth
Etion’s vision is to create, digitise, connect and secure both generic and bespoke digital technology solutions to improve the safety, productivity, connectivity, and cybersecurity of its customers.
It aims to do this by creating and leveraging off its own IP and by strengthening its customer-focused approach to doing business.