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DATADOT TECHNOLOGY LIMITED — Capital/Financing Update 2010
Dec 14, 2010
64764_rns_2010-12-14_d240db95-e1e2-4b7c-955f-d3be7c9c6214.pdf
Capital/Financing Update
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DataDot Technology Limited ABN 54 091 908 726 Securities Exchange Announcement
15[th] December 2010
Strategic Share Placement
The Directors of DataDot Technology Limited (ASX:DDT) are pleased to announce the placement of 23,658,537 ordinary shares at 4.1 cents per share with Mr Collin Hwang, owner of DataDot Technology Taiwan Pte Limited (DDTw). DDTw has been the licensed distributor of DataDot Technology IP in Taiwan since 2002.
The placement has raised $970,000 and represents 4.985% of the company’s issued capital.
As announced at the DDT AGM on 26[th] November, DDT and DDTw have agreed to extend their commercial relations by forming a joint venture company which will be granted licences to commercialise both the DataDot and DataTrace IP in nominated markets in China. The JV company will be funded by DDTw but controlled by DDT and included in the consolidated DDT Group. Under this structure, in lieu of receiving single front-end licence fees for the IP, DDT will continuously derive 50% of distributed profits by the joint venture company and the early costs of the venture will be funded by DDTw.
Since the AGM, both parties have determined to further consolidate this strategic alliance, through a share placement by DDT to DDTw of 4.985% of DDT’s issued capital. The issue price of 4.1 cents is the same price that was offered to all shareholders in the Share Purchase Plan that closed on 3[rd] December. It is noted that the aggregate proceeds of this placement and the recently closed SPP are $3.97million, materially less than the $4.5million cap placed on the SPP raising by DDT.
Under the terms of the placement, the shares placed with DDTw will be held in voluntary escrow until the joint venture company has been formed and documentation finalised. This is expected to be in early to mid-January 2011.
Mr Collin Hwang is a professional investor within the meaning of s.708 (11) (b) of the Corporations Act 2001.
Mr Bruce Rathie, Chairman of DDT, said that the Board welcomed Mr Hwang’s entry on to DDT’s share register. “Collin brings a solid understanding of the business, considerable success as an existing distributor for DDT and impeccable credentials in Taiwan and now the Chinese market, a major new growth strategy for DDT. His
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capital contribution further consolidates the strength of our common interest in developing the China market.”
Contact Information: DataDot Technology Limited Ben Bootle, CEO Phone: +61 (02) 89774900 e-mail: [email protected] web site: www.datadotdna.com