Home Listed Tech $4 million readies Inabox for expansion

$4 million readies Inabox for expansion

Wholesale telecommunications services provider Inabox Group has completed a $4 million capital raising as part of its plans to continue further acquisitions to fuel growth.

Under the placement, 3,636,364 fully paid ordinary shares will be issued at $1.10 per share, a discount of 14% to the last traded price, and placement shares are expected to commence trading on the ASX no later than 2 March.

The funds raised will also be used to pay off short-term debt due to the recent Hostworks acquisition.

Inabox chief executive Damian Kay says all acquisitions will continue to fit within the company’s vision of being a “leading managed IT, cloud and communications provider to the SME, corporate and consumer brands”.

“This means we will look to acquire businesses in the cloud, managed IT and comms space,” Kay says, adding that “potential security players and Unified Communications companies will be of interest”.

He says driving the organic growth is key as well for the company.

“Our investment strategy will continue to be made in areas that take us further up the value chain. Significant investment in our Unified Communications offering for our 400+ strong channel partners has been testament to this.”

“In addition to acquisitions, a decent part of the funds raised will be used to pay short-term debt related to the Hostworks acquisition – allowing us to free up the balance sheet and giving us a war chest to pursue highly accretive acquisition opportunities when they are arise.

Kay says the placement received strong support from new and existing shareholders, including institutional funds and sophisticated investors, with Taylor Collison the lead manager. The issue was not underwritten.

“We are pleased at the level of interest from both our existing shareholders and institutions keen to become shareholders,” he said.

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).