MEGAPORT PLACED IN TRADING HALT FOR EUROPEAN EXPANSION

MEGAPORT PLACED IN TRADING HALT FOR EUROPEAN EXPANSION

MEGAPORT (ASX: MP1) has been placed in a trading halt for a proposed capital raising.

The Brisbane company also proposes the execution of transaction documents for a European acquisition.

The trading halt applies from the commencement of trading today, Thursday 28 July, through to commencement of trading on Monday 1 August or earlier.

Megaport last traded at $2.06, and has been within 15c of this range for almost a month. The company traded at a high of $3.80 in February.

Founded by tech-and-telco entrepreneur Bevan Slattery, of NEXTDC (ASX: NXT), Superloop (ASX: SLC) and now defunct PIPE Networks (ASX: PWK) origins, Megaport listed on the ASX in December 2015, issuing shares at $1.25 each through an IPO.

The company listed to serve ambitions to rapidly expand into North America, Europe and Asia data centres. 

The heavy infrastructure required to do so means Megaport's costs have been high, with the company taking a $9.9 million loss for the half year to December. However, cash reserves have been high on average, Megaport holding $25.44 million in the bank at the end of the December reporting period.

In February, Megaport CEO Denver Maddux told Business News Australia a recent partnership with Amsterdam Internet Exchange meant big things for the company's European expansion.

More Megaport:

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