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DataMotion cancels rights issue

DataMotion cancels rights issue

IT security solutions company DataMotion Asia Pacific (ASX:DMN) has cancelled plans for an up to $615,000 rights issue, one day after it had been announced.

DataMotion on Thursday informed the market it has been unable to secure a required waiver to an ASX listing rule.

The rule in question stipulates that the issue price of each security in a rights issue must not contain a fraction of a cent, except under certain conditions.

DMN shares have been trading at $0.001 since June.

The company revealed it will now explore unspecified alternate capital raising arrangements to help pursue potential IT-related acquisition or investment opportunities.

DataMotion launched the one-for-three rights issue yesterday, making it clear that the funds would be used to pursue these M&A ambitions.

The company reported a net loss of $953,000 in FY11, but this was down 36% on its loss from FY10.

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Tags ASX:DMNDataMotionrights issueASXMergers and acquisitions

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