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.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsASXDataMotionrights issueASX:DMN

Show Comments