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Leading technology communications company, MGM Wireless Limited (ASX:MWR) (“MGM” or “the Company”) is pleased to announce that the Company will undertake a Share Purchase Plan (SPP), that will offer eligible shareholders the right to apply for up to $30,000 of New Shares at an issue price of $0.1075 (10.75 cents) per share (Issue Price).

Highlights:

  • Share Purchase Plan (SPP) for eligible shareholders to apply for up to $30,000 of New Shares at an issue price of $0.1075 (10.75 cents) per share.

  • The Company continues to progress through an authorization and execution process to finalise a significant new sales agreement with an update expected in the coming days.

  • Capital raised will be used to accelerate the growth of MGM’s SPACETALK business.

The Issue Price represents:

  •  a 23.2% discount to the last traded price of MGM shares on 22 May 2020, being the closing price before the Company’s shares were placed in a trading halt and subsequent suspension at the request of the Company; and

  • a 10.0% discount to the volume weighted average market price of MGM shares over the last five days on which sales of shares were recorded on ASX immediately prior to the announcement of the SPP.

Eligible shareholders on MGM’s register at 5.00pm (ACST) on 4 June 2020, being the record date, are entitled to participate in the SPP.

The SPP is targeting to raise $1.5 million however if demand for the SPP exceeds $1.5 million, the Company reserves the right to close the SPP early and scale back applications or elect to increase the amount raised under the SPP.

Commenting on the SPP, MGM Wireless CEO, Mark Fortunatow said: “The SPP is an attractive opportunity reserved for our existing and loyal shareholders to increase their holdings prior to the Company entering a significant next stage of scale-up and growth, and at a very attractive discount to an already COVID-19 affected share price. With strong distribution of SPACETALK across Australia, New Zealand and the UK and the impending release of a new seniors watch, the capital raised will be used to further grow the SPACETALK business, as we near finalization of additional distribution opportunities with major telcos. I strongly encourage shareholders to participate.”