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MEGAPORT (ASX: MP1) has raised $17.85 million through a private placement to shareholders.
The placement was significantly oversubscribed, with 10.5 million fully paid ordinary shares on offer to sophisticated and institutional investors.
Shares were offered at $1.70, a 17.5 per cent discount on Megaport's closing price on July 27.
Megaport will also offer existing shareholders an opportunity to acquire additional shares at the same price as the placement under a share purchase plan.
The extra funds let Megaport continue its expansion throughout Europe, Asia Pacific and North America, and support staffing and marketing costs and general working capital requirements.
"The proceeds from this capital raising enable Megaport to align towards our major priorities. First, to accelerate revenue growth in all markets, especially North America and Europe. It will also enable continued ecosystem expansion with the addition of new partners and geographic reach and allow us to complete network development," says Megaport CEO Denver Maddux (pictured).
Settlement of the placement is expected to occur on August 4, with the placement shares expected to be allotted on August 5.
Megaport entered a one-day trading halt towards the end of last week, after announcing the capital raise and to process documentation for European acquisitions.
The company announced the acquisitions of Germany's second largest internet exchange operator and another provider in Bulgaria on Friday.
Upon exiting the trading halt on Friday afternoon, Megaport's share price jumped from $2.06 to a high of $2.25, before closing at $2.18.
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