Rhipe Limited (ASX:RHP), formerly Rhype Limited, has raised $20 million under the first tranche of its broader $25 million capital raising to fund expansions of its Cloud licensing business.
The funds were raised through the placement of 20 million shares priced at $1 each to institutional investors.
A further issue of $5 million of shares will be completed following shareholder approval at an extraordinary general meeting of the company to be held in January 2015.
In addition to the Placement, the company will conduct a share purchase plan priced at $1 per share to raise up to $3.5 million.
Acquisitions
Rhipe is expanding its Cloud licensing business through:
- The strategic acquisition of 100% of nSynergy OSC Holdings Pty Ltd and its operating subsidiaries; and
- A 12.5% investment in LiveTiles and its operating subsidiaries.
The investment in nSynergy and LiveTiles adds additional solutions capabilities for the company.
This allows it to provide value added services to its 1400+ service provider channel.
It will also broaden its relationship with key vendors such as Microsoft and provides additional territories such as the U.S., China and the UK.
