Cloud services company Bulletproof Group has just raised $4.27 million after completing a recent placement and the market is punishing the company for it.
The ASX-listed company announced today it had completed an institutional placement of more than 14 million shares at an issue price of $0.30 a share.
Bulletproof said the funds, which are the equivalent of nearly a quarter of FY14 revenue, will be used to bolster working capital as it chases growth.
Shares dived on the news, falling about 16 per cent this morning before recovering slightly a short time ago to $0.31 a piece, 13.89% below the day’s opening price.
At the same time, Bulletproof has launched a share purchase plan for existing shareholders, also at $0.30 a piece with any funds raised from the exercise expected to be used for enhancing its “overall financial strength and flexibility.”
Bulletproof also said there could be a small acquisition on the cards which some of the fund could be used for.
Last financial year the cloud management company posted revenues of $18.3 million but reported a NPAT loss of $3.1 million and an underlying NPAT of $450,000.
In the 2013 financial year Bulletproof’s NPAT was a loss of $96,000 on revenue of $14.1 million.