iWOW Technology is issuing 15 million new ordinary shares to an existing shareholder at 20 cents per share, following the shareholder’s interest in subscribing to new shares.
This will result in the company raising gross proceeds of $3 million.
The existing shareholder Mehta Vimesh Piyush, acquired his shareholding from the open market after the company’s initial public offering (IPO) in April 2022.
Piyush says that he is interested in participating in the company’s future growth. He is a Singaporean private investor and entrepreneur, and will have no role in the company.
Upon the completion of the subscription, Piyush’s shareholding in the company will increase from 2.73% to 7.98% and will be designated as a substantial shareholder of the company.
Piyush approached the company with an offer to subscribe for new shares by way of a private placement. The board of iWOW said that it views the subscription as a proactive measure to strengthen the company’s capital base, maintain financial readiness for potential M&A opportunities and support opportunities for its Age-Tech segment.
The board said that the issue price was determined following arm’s length negotiations with the subscriber, and is of the view that the issue price reasonably reflects prevailing market conditions.
iWOW intends to use the net proceeds in two ways — about $2 million will be used to expand business through investments, JVs, M&As, and the other $950,000 will be used for Age-Tech.
Shares in iWOW Technology closed 0.5 cents lower or 2.32% down at 21 cents on Sept 22.
