Communication Design

Communication Design: Is proposing a placement of up to 245m new shares at an issue price of $0.12 per share, representing a 14.9% discount to the VWAP on the last traded date of 17th Sept ’14. The placement shares will represent 50% of the company’s new enlarged share base, and will raise net proceeds of $28.3m. About 95% of the net proceeds raised will be used for potential acqusitions and investments, while the remaining 5% will be used for general working capital. Assuming that the proposed placement was completed on 30th Jun ’14, the group’s net tangible assets would rise from 6.16¢ to 8.86¢ and its earnings per share will fall to 0.62¢ from 1.25¢ The company will be seeking approval from Shareholders at an EGM to be convened to approve the proposed placement. PrimePartners Corporate Finance will be acting as the placement agent.