Business & Finance |
MGM Wireless Limited

SHARE PURCHASE PLAN RESULTS

Leading software technology communications company, MGM Wireless Limited (ASX:MWR) (“MGM” or “the Company”) is pleased to announce that the share purchase plan (SPP) which closed on 7 July 2020 was heavily oversubscribed.


Highlights:

  • Strong support for the SPP from eligible shareholders  

  • $5.0m subscriptions received, exceeding $1.5m offer size by 236%  

  • Offer size increased to $2.5m  

  • Scale back applied having regard to each applicant’s shareholding at the record date for all applications over $5,000 

  • Funds to be used to scale up MGM’s SPACETALK business


Valid applications in excess of $5m were received, exceeding the original target of $1.5m by 236%.


The offer size has been increased to $2.5m to ensure the Company is well capitalised to execute on the immediate growth opportunities presented by the release of its recently announced SPACETALK Life Seniors device and new Vodafone distribution agreement. 


The strong interest required a scaling back of valid applications that the Company received under the SPP offer. The scale back was applied with an emphasis on the pro rata shareholding (at the record date of 4 June 2020) of eligible shareholders who applied for SPP Shares. Eligible shareholders who applied for a parcel of 46,512 SPP shares (an application amount of $5,000) or less will not be subject to any scale back and will receive the amount they applied for, rounded up to reflect a whole number of SPP Shares. 


The outcome of applying the scale back is that approximately 55% of applicants will receive the parcel of shares they applied for. Excess application amounts of approximately $2.53m will be refunded by cheque. Refunds will be despatched to applicants on or about 21 July 2020. 


The SPP shares are expected to be issued on Thursday, 16 July 2020. Each successful applicant under the SPP will be mailed a holding statement recording the number of SPP shares issued to them under the Offer.


For further information please contact:

Jane Morgan Management

Investor and Media Relations 

jm@janemorganmanagement.com.au

+ 61 405 555 618



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