IndraNet content with new cash

By Phil Boeyen, ShareChat Business News Editor

Thursday 19th April 2001

Tech company IndraNet says it's happy with its latest capital raising even though it failed to reach its $5 million target.

After two months of promotion the company's second public float raised $4.125 million. The company went direct to the market for the float without using brokers or underwriters.

Chairman Russell Fitts says around $3 million came from new investors and the remainder from existing shareholders.

Mr Fitts says although the raising fell short of the target amount, the company had been aiming at the top of the range and he is pleased with the response, especially from new investors.

"What we are looking for is a wide, stable shareholder base and this provides it.

"It's also evident that a number of the new shareholders have not invested in shares before but it appears they have been prepared to read the literature and understand our technology and its potential."

Money raised from the second float will go towards the ongoing development of the company's core network communications technology and its early commercialisation.

The company now has 2,777 shareholders and around 194.5 million shares on issue. Around a quarter are owned by managing director Louis Arnoux.

IndraNet is currently working on its first commercial venture, a mini-IndraNet communications system in Nice, which Russell Fitts says is progressing well and has the potential to return revenue by the end of the year.

IndraNet also holds the Australian and New Zealand licences for a compressed air car and Mr Fitts says the company is hoping to have a production vehicle available for viewing here in a few months time.

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