CommSoft tables new rights issue

By Phil Boeyen, ShareChat Business News Editor

Wednesday 3rd April 2002

CommSoft (NZSE: CSG) has unveiled a 2-for-1 renounceable rights issue with a capital raising target of A$2.9 million.

The telecommunications software company says shareholders will be offered two new shares at A1 cent for every share held, with the proceeds going towards working capital requirements and marketing and sales.

Chairman Greg Gardiner says that almost A$1.1 million of the issue is underwritten but the directors hope that all shareholders will take the opportunity to invest in the company.

"Set at what we believe are attractive price levels, the rights issue gives shareholders an opportunity to average down the historical cost of their holdings with only very small cash outlays compared to their original investments.

"Investing via the issue will also allow shareholders to retain their relative equity in the group. The directors believe that, with shareholder support, CommSoft Group can deliver the improvements in performance and value our shareholders require."

Earlier this year the company had been planning a 1-for-1 rights issue at A5 cents per share to raise A$6.2 million but that issue was cancelled at the start of March.

CommSoft MD Mark Lunt says the company has worked hard and made considerable progress over the past few months to drive down costs, improve its products and expand distribution capabilities.

Prospectuses for the new rights issue are expected to be sent to shareholders by the middle of April.

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