Chapmans Limited (ASX:CHP) has raised $800,000 for investment and working capital purposes.
In August, the specialist investment and finance company acquired a 15% stake in technology commercialisation vehicle Digital4ge Pty Limited for $750,000.
Digital4ge focuses on the conversion of standout commercial propositions which solve everyday consumer and enterprise problems through the use of mobile technology.
It plans to originate, build and commercialise six companies each year, maintaining a controlling position in each through to specific liquidity events such as outright sale, initial public offering or large scale external funding.
Chapmans has also invested $1.6 million, representing a 16.92% interest, in mining services company Tempo Australia (ASX:TPP).
Tempo is considered a core high-conviction investment. In mid-2014, it was awarded a 1-year contract with Rio Tinto, with revenues anticipated in excess of the original $13 million contract value.
Highlighting Chapmans’ investment strategy, it received an absolute return of 15.71% earlier this year from the sale of its stake in Thorney Opportunities (ASX:TOP).
The company had secured 10% of Thorney’s $10 million initial public offering at the end of 2013 and invested a further $500,000 on 15 January 2014 before exiting five weeks later.
Chapman’s also has an interest in Jatenergy (ASX:JAT), a coal and biofuel development company.
Capital Raising
The company is raising the $800,000 in two tranches:
- The issue of 12,250,000 shares at $0.01 per share to immediately raise $122,500 on 11 November 2014; and
- The issue of 67,750,000 shares at $0.01 per share to raise a further $677,500 to be approved at an EGM that will be sent to shareholders in the near future.
Chapmans is capped at around $1.2 million.
