Cabletalk happy with rights support, share price

Trading in the issue closed yesterday and the company says 26% of rights were traded during the allotted period at an average price of 7.4 cents.

"It appears that 74 % of the entitlements will be taken up by existing shareholders despite the heavy 9 for 1 entitlement and this is very pleasing," says chairman Ross Keenan.

"Investors understand the company's business and value the utility-like revenue streams as well as recognising Cabletalk's growth prospects."

Cabletalk is a telecommunications network servicing company which plans to buy Cabletalk Astute Network Services as its key transaction.

Nearly 11 million new shares will be issued under the rights offer and the capital raised will be used to both fund the key transaction acquisition as well as provide additional funds for growth.

As a result of the rights trading the company expects to have gained a further 200 shareholders.

The closing date for acceptance and renunciation of rights is 5pm Friday.

Mr Keenan says he is happy with both the price the rights traded for and the current price of the company's head shares, which are trading around a 9% premium to the application price of 50 cents per share.

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