IT Capital casting for money at 4c a share

Venture capital company IT Capital is planning to raise $3 million-$5 million through a share placement, despite a "difficult" market.

The company said it would issue new shares at 4c each, compared with the closing price of 7c before the announcement, although its shares fell yesterday to finish at 5.2c.

If $4 million was raised, it would mean a 58 per cent increase in the number of shares the company has on issue.

"With current cash reserves at less than $500,000, new capital is required to allow the company to move forward over the next 12 months," said chief executive David McKee Wright.

He said market conditions had made the exercise a difficult one and the placement price of 4c reflected the risk attached to investing in IT Capital in its current state.

He said the company also intended to conduct a rights issue within the next six to nine months.

IT Capital owns 43 per cent of 3D imaging technology specialist Deep Video Imaging.

Last week it sold a 23 per cent stake in sports webcasting company Virtual Spectator to Endeavour Capital.

- NZPA