I Synergy Group Launches $1M Fully Underwritten Entitlement Offer

Capital Raise Details

I Synergy Group Limited (ASX, IS3), a technology company focused on digital innovation and social impact, has launched a renounceable entitlement offer to raise up to approximately $1 million before costs. The offer allows eligible shareholders to acquire two new fully paid ordinary shares for every one share they currently hold, priced at a nominal $0.001 per share.

This capital raising initiative is fully underwritten by VGI Vmall Limited, providing a safety net that ensures the company will secure the targeted funds regardless of shareholder take-up. The offer is open to shareholders with registered addresses in Australia, New Zealand, China, Malaysia, and Singapore, reflecting I Synergy’s regional shareholder base and growth ambitions.

Use of Proceeds

The company has outlined a detailed allocation of the proceeds, with a focus on expanding operational capacity and advancing new projects. Key expenditure areas include $220,000 for ongoing operations, $150,000 dedicated to initial licensing and integration fees for new projects, and $120,000 allocated to local technical setup and cloud hosting infrastructure.

Additional funds will support sales and marketing efforts, particularly for pilot launches, cybersecurity training and tools, and general working capital needs. This diversified use of funds underscores I Synergy’s commitment to strengthening its technological foundation while preparing for market expansion.

Offer Mechanics and Timeline

The entitlement offer is renounceable, meaning shareholders can trade their rights on the ASX if they choose not to subscribe. This flexibility allows shareholders to realise value from their entitlements or increase their holdings. Fractional entitlements will be rounded up, and new shares issued will rank equally with existing shares.

The timetable is well-defined, with the record date set for June 10, 2025, and the offer expected to close on June 24, 2025. Shares issued under the offer are anticipated to commence trading on July 1, 2025. The company has also reserved the right to extend the closing date if necessary, providing some flexibility in the capital raising process.

Strategic Implications

This capital raise comes at a pivotal time for I Synergy as it seeks to accelerate its growth trajectory and deliver on its mission of social impact through technology. By securing funds for new project licensing and integration, the company is positioning itself to expand its product offerings and market reach. The emphasis on cybersecurity and cloud infrastructure also signals a proactive approach to safeguarding its digital assets and ensuring scalable operations.

While the offer dilutes existing shareholders who do not participate, the fully underwritten nature of the raise mitigates execution risk and provides a clear runway for the company’s next phase. Investors will be watching closely to see how effectively I Synergy deploys these funds to generate tangible growth and shareholder value.