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SPACETALK LTD — Capital/Financing Update 2017
Sep 28, 2017
65842_rns_2017-09-28_12f0d217-e2df-499f-9a98-d22d95883980.pdf
Capital/Financing Update
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ASX Announcement MGM Wireless Limited (ASX:MWR) 29 September 2017
MGM Wireless Closes Entitlement Offer Securing Funds to Promote Spacetalk Wearable Device
Highlights
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MGM Wireless closes its Entitlement Offer raising a total of approximately $290,000
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Funds from the Entitlement Offer will be used to promote the new Spacetalk wearable device
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MGM Wireless has achieved the first production run of Spacetalk and will launch the device next month
Friday 29 September 2017 – Technology company MGM Wireless Limited (ASX:MWR) (“MGM” or “the Company”) is pleased to announce that the non-renounceable entitlement offer ( Entitlement Offer or Offer ) announced on 30 August 2017 closed on 26 September 2017. The Company sought to raise approximately $380,000 through the Offer of up to (approximately) 1,086,430 new shares to eligible shareholders at an issue price of $0.35 per new share on the basis of 1 new share for every 8 existing shares held.
The Company has received valid applications for a total of 487,230 New Shares raising approximately $170,500 under the Offer.
The calculation of the shortfall for the Offer is as follows:
| Number of New Shares | Gross Proceeds | |
|---|---|---|
| Maximum subscription | 1,086,681 | $380,337 |
| Less Entitlement Offer subscriptions for |
487,230 | $170,530 |
| Shortfall | 599,451 | $209,807 |
In addition, the Offer is partially underwritten by an entity associated with Executive Chairman Mark Fortunatow up to a maximum of 350,000 shares raising a further $122,500. As the shortfall is greater than 350,000 shares, the underwriter will be required to subscribe for the maximum amount, being 350,000 shares. In total, the Offer, including the underwritten amount, will raise approximately $293,030 less expenses. The net proceeds will be applied to the launch and ongoing marketing, advertising and public relations’ activities to promote sales of the “Spacetalk” children’s 3G GPS smartwatch/phones.
Developed by MGM’s All My Tribe division, Spacetalk is a smartwatch that allows parents and children to be in constant contact via two-way 3G communication. The device is the first of its kind in Australia and one of the first worldwide to be designed specifically for children. MGM announced the first successful production run of Spacetalk on September 20 and is expecting online sales to commence next month.
The above figures are subject to no cheques for subscriptions being dishonoured between the date of this announcement and the issue of the New Shares. The issue of New Shares is scheduled to occur on 3 October 2017 and it is anticipated that normal trading of the New Shares will occur on 4 October 2017. The issue of the shares to the underwriter will occur separately, within 15 business days after the close of the Offer.
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The MGM Board would like to express their thanks for the support of participants in the Offer.
MGM Wireless CEO Mark Fortunatow: The Company is delighted with the results for Entitlement Offer. The raising has achieved its objectives. The Company now looks forward to the sales launch of the Spacetalk watch with the additional promotional resources available due to the proceeds of this Offer. The Spacetalk launch will be in the coming weeks.
Ends
For further information please contact:
MGM Wireless Limited
Mark Fortunatow CEO M: +61 (08) 8104 9555 E: [email protected]
Media Enquiries
Julia Maguire Director The Capital Network M: +61 419 815 386 E: [email protected]
About MGM Wireless
MGM Wireless Limited (ASX:MWR) is a technology company designing, developing and commercialising Internet of Things (IoT) devices for children, and software for school communication and student absence management. The Company’s All My Tribe division has developed a wearable device called Spacetalk which allows two-way 3G communication, GPS tracking and alerts parents whenever children leave designated safe spaces such as school or the home. MGM Wireless built its track record with school communication solutions after creating the world’s first SMS based Automated Student Absence Notification Solution. It is recognised as a global leader and pioneer in socially responsible and technology-enabled school communications. Used by over 1,100 schools and 1.6 million parents, the Company’s multichannel school communication solutions empower schools to effectively communicate to parents and caregivers through SMS, mobile in-app and other means to improve student attendance and safety, help schools reduce operating costs and increasing parent engagement. MGM Wireless products include student absence notifications ‘messageyou’, absence analytics software ‘Watchlists’, school news and messaging app ‘School Star’, a content management and messaging platform for mobile school communication called Outreach+, and student attendance management solution ‘RollMarker’. To learn more please visit: www.mgmwireless.com