Internet kiosk developer pieNETWORKS (ASX:PIE) has announced a rights issue to raise $2.15 million.
The one-for-eight rights issue has been fully underwritten. The issue price of $0.02 per share represents a 15% discount on the closing price of PIE shares on February 16.
The funds raised will go towards ongoing operations, including production of the second generation of its Hotspot Webphone joint phone and internet kiosk product.
pieNETWORKS said Telstra's market assessment of the first iteration of the product was drawing to a close. After it finishes, pieNETWORKS and Telstra (ASX:TLS) will negotiate commercial terms for a large scale deployment.
pieNETWORKS also operates its own network of the terminals in New Zealand, and is in discussions with other potential commercial partners, it added.
PIE shares grew 10% on Thursday to $0.022.