04. June 2020 | 14:51 CET
dynaCERT, Exasol, Scottie Resources - capital injections for growth
The stock exchange is a marketplace for company shares that are traded in the form of stocks. The securitised equity can change hands in fractions of a second through a stock exchange listing. In addition, through the tradability of shares, the capital market offers companies the opportunity to raise growth or risk capital from investors more quickly. A key advantage of a public company over a private one is that shareholders can track the value of their share on each trading day and change the portfolio if necessary. Three success stories offer exciting examples of this.
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ISIN: CA26780A1084 , DE000A0LR9G9 , CA81012R1064
Preparation for change of trading segment
The Canadian CleanTech company dynaCERT has raised CAD 7.3 million overnight this week within the scope of an equity financing. The capital measure was necessary because the company wants to change trading segments from the TSXV to the TSX and in this context an equity increase by one or more brokers is a requirement of the Toronto Stock Exchange. Due to the obligation to publish a prospectus, important information of the company was reviewed and details were disclosed in order to protect investors. The net proceeds from the offering will be used, among other things, to purchase raw materials and to finance manufacturing and assembly costs.
Last week the German software company Exasol went public. In the course of the IPO, investors were offered new shares at an issue price of EUR 9.50. The price range in the run-up was between EUR 8.50 and 10.50. This step enabled the company to place around 9.2 million shares and almost EUR 90 million of fresh liquidity was injected into the treasury. The funds will be used for research and development as well as marketing and sales. In the first few minutes of trading after the stock exchange debut, the shares changed hands at over EUR 14.00. A quick profit of over 40% was possible. Currently, the share is quoted at above 13.00 EUR and still shows a substantial increase in price compared to the issue price.
Capital for further development
Scottie Resources, a Canadian mining company focused on gold exploration in British Columbia, also announced a financing this week. The company will undertake a non-brokered private placement of up to 4.4 million units at a price of CAD 0.22 per unit with gross proceeds of up to CAD 968,000. Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole Warrant is exercisable for the purchase of one common share of the company at a price of CAD 0.34 for a period of two years from closing. According to the news release, a family office in Geneva, Switzerland, is providing the financing and increasing its shareholding to 9.9%. The proceeds will be used for the strategic development of the Company's projects located in the Golden Triangle region of British Columbia and as working capital.