99 Wuxian (ASX: NNW) has successfully completed an equity placement of 45.45 million new CDIs at $0.55 to raise $25 million.
The placement was oversubscribed with strong interest from domestic and international institutions, an excellent result in the current market.
Funds raised will be applied to activating its registered mobile commerce users, driving user growth and increasing services to business partners.
The substantial Australian and international institutional participation in the placement reflects a strong vote of confidence in the company’s growth strategy for the 99 Wuxian mobile commerce platform.
NNW is also conducting a strategic review including consideration of a potential listing on an alternative international exchange.
Improving access to global capital markets could help deliver its long-term growth strategy by increasing market awareness and accessing international technology investors.
The decision to undertake the review follows the growth the company has made in building a Chinese business-to-business-to-consumer mobile commerce platform with more than 31 million registered users.
It has also become the third largest operator in the Chinese mobile commerce market and has expanded its service offering to more than 50 banks and financial institutions, including nine of the top 10 Chinese banks.
More than 155 leading Chinese merchants have also been activated on its platform as well as developing and launching new service offerings for its B2B partner base.
99 Wuxian had $3.9 million in cash as of 30 June 2014.
