5G Networks has become the latest technology company to take advantage of an easier capital market, announcing a plan to raise $18.3 million.
The publicly listed company will use the funds to pursue both acquisitions and grow its channel sales footprint in Australia.
5G Networks also claimed it hoped to extend its fibre network into Brisbane and Adelaide, focusing on city centre demand and “key” data centre locations.
“Proceeds from the capital raising will be used to accelerate organic growth initiatives and to fund acquisition opportunities,” according to an investor briefing document.
“5GN has a disciplined approach to capital deployment and a proven track record of executing and delivering growth from acquisitions.”
The announcement follows emergency moves by the Australian Securities and Investments Commission (ASIC) and the ASX on 31 March aimed at easing capital fundraising as the coronavirus pandemic hit companies’ cash flows.
In that time, around 30 companies that provide IT, software, cyber security, artificial intelligence, telecommunications have undertaken capital raising initiatives.