Australia's Buddy Technologies tanks on discounted capital raising

Buddy Technologies

16/07/2021 02:36

** Shares of Buddy Technologies  BUD.AX  tank as much as
46.5% to A$0.023, their biggest intraday pct loss since March
13, 2008
    ** The cloud-based data management platform receives firm
commitments for placement to raise A$6.5 mln ($4.83
mln) urn:newsml:reuters.com:*:nASX4QR0J7
    ** Placement at offer price of A$0.025 per new share, a
41.9% discount to last closing price of A$0.043 on April 23,
after which trading of co's securities were suspended
    ** BUD to also undertake entitlement offer to raise up to
~A$10 mln
    ** Co adds it has entered into binding arrangements with
China's Eastfield Lighting (Hong Kong) Ltd to settle all amounts
owing in respect to line of credit facility and historical
accounts payable
    ** BUD says it has also restructured its existing $10 mln
term debt facility with San Francisco-based Partners for Growth
VI, L.P. (PFG)
    ** Says proceeds from capital raising will be used to repay
lenders
    ** Stock at its lowest since July 29, 2020
    ** About 65 mln shares change hands, vs the 30-day average
volume of 5.4 mln shares
    ** Stock down 17.3% this year, as of last close
    
    ($1 = 1.3466 Australian dollars)

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com))