ASX-listed e-learning business Velpic is hoping to raise up to $5.85 million via a renounceable rights issue as the company seeks an offshore push.
The raise is at $0.03 a share and CPS Capital is underwriting it to the tune of $2 million. The prospectus was lodged yesterday and Velpic is offering 2-for-5 deal, with shareholders receiving two free attaching options for every two new shares subscribed for with an exercise price of $0.06 and term of 24 months.
CEO Russell Francis says the offer price represents a 30% discount to the volume weighted average trading price for the 30 days trading to June 3.
“We have chosen a rights issue as the most appropriate way to raise capital at this point in the evolution of the Velpic business as it allows all of our loyal existing shareholders to participate. New investors will be able to buy rights as the issue will be renounceable,” Francis said.
“Funds raised from the rights issue will help the company to accelerate its global expansion plans, maintain our strong customer growth momentum and uphold our competitive advantage in the rapidly growing Learning Management System market.”
The company says corporate e-learning is now a $107 billion market globally, with $4 billion spent on Learning Management Systems (LMS). Last month, launched its second app, Velpic Learn, which lets users take training lessons on smartphones or tablets.
The raise comes as Velpic signed on the Bulldogs’ Canterbury League Club as its first sporting and hospitality client.
But don’t expect the Bulldogs front row to be discussing quantum theory as they pack down a scrum. The club plans to switch from face-to-face induction and training for its 500 employees to Velpic’s e-learning platform and will develop its own content, alongside Velpic’s material.