Activeport Prices Rights Issue at 1 Cent to Raise $2.5 Million, Offering Free Options
Activeport Group Ltd has announced a fully underwritten rights issue to raise up to $2.5 million, offering shareholders discounted shares and free options to accelerate growth initiatives.
- 1 for 2.75 non-renounceable rights issue at 1 cent per share
- Fully underwritten by Alpine Capital and GBA Capital
- Free attaching options exercisable at 2 cents, expiring November 2028
- Funds earmarked for business development, product innovation, and loan repayment
- Substantial shareholder MWP Partners commits $1 million, potentially increasing voting power
Capital Raise Overview
Activeport Group Ltd (ASX, ATV), a software developer focused on telecommunications and data centre orchestration, has launched a fully underwritten rights issue aiming to raise up to $2.5 million. The offer is priced attractively at 1 cent per share, representing a 28.6% discount to the last traded price of 1.4 cents, and includes a free attaching option for every two new shares subscribed. These options carry an exercise price of 2 cents and expire in November 2028, providing shareholders with potential upside beyond the immediate capital raise.
Underwriting and Shareholder Participation
The rights issue is fully underwritten by Alpine Capital Pty Ltd and GBA Capital Pty Ltd, who also serve as joint lead managers. This underwriting arrangement provides a safety net ensuring the company secures the targeted funds regardless of shareholder uptake. Notably, MWP Partners Limited, a substantial shareholder, has committed a total of $1 million to the raise, including a sub-underwriting agreement, which could increase its voting power to 23.62% post-issue. The offer is open to shareholders registered in Australia, New Zealand, Hong Kong, Gibraltar, and Singapore, with entitlements being non-renounceable and non-transferable.
Use of Proceeds and Strategic Implications
The capital raised will be allocated across several key areas, $500,000 for business development, $400,000 for delivery and support, $510,000 for product development, $203,098 for corporate and administrative expenses, and a significant $675,000 earmarked for loan repayment. This diversified allocation underscores Activeport’s intent to strengthen its operational foundation while accelerating growth initiatives. The company’s orchestration software aims to enhance network infrastructure efficiency, a sector poised for growth amid increasing demand for cloud and AI-enabled services.
Timetable and Next Steps
The prospectus was lodged with ASIC on 4 August 2025, with the offer opening on 11 August and closing on 22 August. Shares issued under the rights issue will rank equally with existing shares, and trading of the new securities is expected to commence on 1 September 2025. Shareholders are advised to review the prospectus carefully and consider the implications of participation, especially given the dilution risk for those who do not take up their entitlements.
Outlook
With the rights issue fully underwritten, Activeport secures a crucial injection of working capital to pursue its growth strategy. However, the ultimate impact on shareholder value will hinge on the company’s execution of its business development and product innovation plans, as well as market reception to its orchestration software offerings. Investors will be watching closely as the company navigates this pivotal phase.
Bottom Line?
Activeport’s fully underwritten raise sets the stage for growth, but shareholder uptake and execution will determine the real payoff.
Questions in the middle?
- Will shareholder participation meet expectations or rely heavily on underwriters?
- How will MWP Partners’ increased stake influence company governance and strategy?
- Can Activeport translate the capital injection into accelerated revenue growth and market share gains?
