Telecommunications service provider Vonex has raised $1.4 million to put towards acquisitions and marketing initiatives.
The company told shareholders that proceeds from the placement will fund growth initiatives such as expanded marketing, acquisitions, building cross-selling opportunities and supplementing the company’s own profile.
The $1.4 million raise came through a placement issuing 14.74 million shares at $0.095 per share, according to an ASX notice.
Vonex managing director Matt Fahey said its strategy had positioned the company to scale up rapidly and develop further market share within the small-to-medium-sized enterprise telco services space.
“The capital we raise through this placement will empower us to expand our outbound marketing initiatives and continue to execute on our merger and acquisition strategy, the success of which we have proven through our successful integration of 2SG Wholesale,” he said.
Vonex acquired Queensland wholesaler 2SG Wholesale for $2.66 million in November.
The deal gave Vonex access to 2SG’s 140-strong fleet of wholesale customers, significantly increasing its current base of just 20.
2SG supplies hardware and connectivity solutions to Australian managed service providers, system integrators and internet service providers.
It has partnerships with Optus, NBN Co and i-Seek Communications and supplies products including mobile broadband, voice, modems, routers, in addition to NBN fixed-line services.