Ann: PLACE: GEO: GeoOp announces strategic placement

• Release Date: 24/08/15 08:30
• Summary: PLACE: GEO: GeoOp announces strategic placement
• Price Sensitive: No
• Download Document  5.95KB

					GEO
24/08/2015 08:30
PLACE
PRICE SENSITIVE
REL: 0830 HRS GeoOP Limited

PLACE: GEO: GeoOp announces strategic placement

GEOOP LIMITED (NZX:GEO)
Monday, 24 August 2015

GeoOp announces strategic placement at a premium to the current share price

The Board of GeoOp Limited ("Geo") announces a placement of approximately
NZ$2.4 million at NZ$0.48c per share, primarily from new strategic investors
based off-shore (the "Placement").  The large global market opportunity that
exists for Geo in the mobile workforce management sector has attracted these
new investors.

The Placement price of NZ$0.48c represents a premium of approximately 9.1% to
Geo's last 5 day volume weighted average price ("VWAP") of NZ$0.44c per
share.

The Placement will provide Geo with further working capital to accelerate
growth, particularly in the Australian and US markets, and execute its
strategic plan focused on achieving profitability.

The Placement will be followed by a share purchase plan ("SPP") for all
eligible Geo shareholders at a price of NZ$0.48c per share (further details
below).

Investors
The new investors will provide Geo with patient expansion capital while
broadening and deepening Geo's investor base.  Geo will also be able to
leverage the new investors' market and industry networks, where appropriate,
to assist Geo achieve its medium and longer term strategic objectives.

Investors in the Placement include:
o A specialised small-cap value fund in Australia that invests in companies
with strong growth prospects.  This fund will become one of Geo's largest
shareholders;
o Value-adding investors in the trades and services industries and in Geo's
wider network;
o Some experienced off-shore and domestic technology investors;
o Anna Cicognani, the CEO of Geo, who has subscribed for NZ$100,000 of
shares. Anna was recently confirmed as Geo's CEO and the board is supportive
of Anna acquiring Geo shares to enhance her incentive and shareholding;
o Some other Geo senior management team members, who have elected to increase
their shareholdings in Geo; and
o All five directors of Geo: Leanne Graham (Executive Director), Richard Suhr
(Independent Director), Viv Brownrigg (Independent Director), Jodi Mitchell
(Independent Director) and Mark Weldon (Chairperson) who, in aggregate, have
subscribed for around NZ$235,000 of shares.

Mark Weldon, Chairperson of Geo, said: "We are very pleased to have
introduced new long term and supportive shareholders to provide the
foundation for the next phase of Geo's growth. One of the new off-shore
investors becomes one of Geo's largest shareholders.  This provides external
certification that Geo has a significant international market opportunity, a
strong product, a sound strategy in place and the board and management team
to execute."

Anna Cicognani, CEO of Geo, said:   "I am thrilled to be Geo's CEO and I am
very excited by the opportunity that Geo offers.  We intend to transform into
the workforce productivity SaaS platform of choice, and we have a clear plan
to create value for all of our shareholders.  My participation in the
Placement further aligns me with other Geo shareholders.  The SPP offers a
significant opportunity for our 1,500+ shareholders to participate at the
same share price as new certifying investors and to potentially increase
their shareholding percentage in the Company."

The Placement
The Placement has raised c. NZ$2.4 million at NZ$0.48 per share.
Participants in the Placement will also receive 1 warrant for every 3 shares
subscribed for in the Placement.  The warrant is exercisable at each holder's
election on three dates prior to, and including, 31 October 2016 at NZ$0.48
per share.  The warrants will also potentially provide Geo with additional
funding in the future of around $800,000 if exercised in full. This will
potentially provide Geo with up to NZ$3.2 million from the Placement.

The Placement (including the warrant) raised the maximum allowable under the
NZAX Listing Rules, without requiring shareholder approval.

Share Purchase Plan
The SPP will provide an opportunity for Geo's eligible shareholders (around
1,500 in total) to participate at the same price as the Placement of NZ$0.48c
per share (terms of the SPP will be subject to legal requirements).

Further details of the SPP will be sent to Geo shareholders shortly.

Reasons for the Capital Raising
Geo listed on the NZAX market on 31 October 2013, raising NZ$10 million at
NZ$1.00 per share.  The volume weighted average price of Geo over the last 12
months is approximately NZ$0.53c per share (Source: NZX).

Since listing, Geo has managed its costs in accordance with its plan and has
proven its business model.  Today's announcement also follows the recent
announcements relating to significant growth in licence user numbers (19,000
at 30 June 2015, compared to 4,500 at the time of listing, representing 322%
growth over a 20 month period), key integrations with MYOB & Intuit, an
enhanced channel partnership with Telstra and confirmation of Anna Cicognani
as full time CEO.

Geo is poised for future growth and raising new capital will enable it to
push further into the Australian market, which is currently Geo's largest
customer market (and where the CEO and Chief Revenue Officer are based).  Geo
plans to strengthen its team in Australia and expand further in the US
market.

Geo and its advisors considered various funding alternatives for Geo to raise
new growth capital, including a rights issue.  The Board concluded that a
rights issue would not provide the benefits to Geo which the placement to new
strategic investors offered.

Geo was advised on the capital raising by Cameron Partners Limited (NZ
alliance partner of global investment bank, Rothschild) and Bell Gully
lawyers.

For more information please contact:
Stewart Reynolds
Chief Financial Officer and Company Secretary
Mobile: +64 (0) 21 247 2964
Email: [email protected]

Bryony Hampton
Content and Communications Manager
Email: [email protected]

--ENDS--
End CA:00268884 For:GEO    Type:PLACE      Time:2015-08-24 08:30:09