IkeGPS raises $3.7 million in placement, plans another $1.3 million raise

Leon Toorenburg, ikeGPS founder holding the Spike, a smartphone attachment.

IkeGPS, the laser measurement toolmaker, said it has raised $3.7 million in an oversubscribed placement to Australian and New Zealand institutional and wholesale investors.

The share placement, which Ike announced earlier this week, was priced at 29 cents per share, a 9 per cent discount to where the shares were trading before they were halted on August 15.

The stock has shed 51 per cent over the past 12 months.

The company said it intends to offer New Zealand shareholders a share purchase plan to raise up to another $1.3 million at the same price, with details to come once it has been finalised and approved by NZX.

"IKE intends to use the proceeds of the placement and the SPP to fund its working capital requirement for the coming 12 to 18 months," it said.

"This working capital requirement is a function of delivering hardware products and selling multi-year subscription software with potential timing differences on large enterprise deals."

The Wellington-based company posted a $10.7 million loss for the year ended March 31, compared to a loss of $8.8 million a year earlier, with revenue dropping 36 percent to $5.8 million.

The drop reflected a weaker first half caused by "several one-off headwinds", which was followed by a return to growth in the second half, the company said.

IkeGPS has projected a return to growth in 2018, forecasting more than 40 per cent sales growth of its Ike4 units, more than 50 per cent growth for new sales of its Spike units, and cash break even in the year.