HITIQ Faces Uncertainty as $1.7M Shortfall Remains After Rights Issue
HITIQ Limited has closed its pro-rata rights issue, raising $360,426 before costs, and is now focusing on placing the remaining shortfall of shares within three months.
- Rights issue closed with $360K raised before costs
- 132.8 million new shares and 66.4 million options issued
- Partial underwriting by GBA Capital and participating directors
- Shortfall of approximately 78.1 million shares remains
- Company initiating shortfall placement with strong investor interest
Rights Issue Closes with Modest Subscription
HITIQ Limited (ASX – HIQ), a technology company specialising in software services, announced the close of its pro-rata non-renounceable rights issue on 20 June 2025. The offer, which aimed to raise up to $2.9 million before costs, secured approximately $360,426 in cash from participating shareholders. This outcome reflects a modest level of subscription relative to the maximum raise target.
Underwriting and Director Support
The rights issue was partially underwritten by GBA Capital Pty Ltd, which provided a safety net for the capital raise. Notably, some of the underwriting was sub-underwritten by participating directors, signalling internal confidence in the company’s prospects. This arrangement helped ensure a baseline level of funding despite the lower-than-maximum subscription.
Shares and Options Issued
As a result of the rights issue, HITIQ is issuing approximately 132.8 million new shares and 66.4 million new options to shareholders who participated. The allotment of these securities took place on 23 June 2025, with trading of the new shares expected to commence on 27 June 2025. This issuance will dilute existing shareholders but also provides fresh capital to support the company’s operations and growth initiatives.
Shortfall Placement Underway
Despite the funds raised, a significant shortfall remains; approximately 78.1 million shares are yet to be placed. HITIQ is actively working with GBA Capital to place this shortfall within a three-month window. Early indications suggest strong interest from both new and existing shareholders, which could help close the gap and further bolster the company’s balance sheet.
Looking Ahead
The successful placement of the shortfall will be critical for HITIQ’s capital strategy and market confidence. While the initial rights issue raised less than anticipated, the ongoing commitment from underwriters and shareholders points to a willingness to support the company’s next phase. Investors will be watching closely for updates on the shortfall placement and any implications for HITIQ’s share price and strategic plans.
Bottom Line?
HITIQ’s capital raise journey continues as it seeks to convert shortfall interest into firm commitments, shaping its financial footing for the months ahead.
Questions in the middle?
- Will HITIQ successfully place the entire shortfall within the three-month timeframe?
- How will the dilution from new shares and options impact existing shareholder value?
- What strategic initiatives will the new capital support in HITIQ’s technology roadmap?
