World Reach (ASX:WRR) is offering a partially underwritten renounceable rights issue to raise up to $2,969,769 at $0.15 to reduce debt and for working capital as sales of its satellite technology for smartphones expands.
Completion of the offer will result in a stable balance sheet that will help support the strategic direction of the company.
The rights issue is partially underwritten to a value of $2.4 million by an existing substantial shareholder, Ample Skill.
On the 22nd May, WRR released a profit guidance, noting that its Iridium GO! product, a new style of satellite communication device providing satellite access via a smartphone, had commenced production.
Strong sales of existing products to core global distributors have continued and WRR now anticipates it will be reporting a profit result in excess of budget.
A net profit is expected in the region of $350,000 to $450,000 for the full year to 30 June 2014, and EBIT is expected in the range of $950,000 to $1.05 million, with EBITDA $1.8 to $1.9 million.
