Cap Raising

From Street Talk:

Audio technology company Audinate is cranking up the volume on a capital raising this week.

It is understood Canaccord Genuity and UBS have been tapped to oversee the transaction. While it was unclear where the offer would price, Audinate's shares closed at $5.69 on Tuesday.Investor sources said the company was getting its ducks in a row on Tuesday evening with an offer expected to raise as much as $35 million, which was tipped to launch as early as Wednesday morning.

The $387 million company's shares are trading down 34 per cent year-to-date and are well south of pre-coronavirus highs at the end of 2019, when the stock was trading at close to $9.

Audinate is headquartered in Australia but has offices in the United States, UK and Hong Kong. Its flagship product is a digital audio platform called Dante which can transmit audio signals across large distances to multiple locations at once and has applications in things like public broadcasting.

According to a trading update last week, Audinate had $29.3 million cash on hand at June 30, 2020. The company posted unaudited revenue of $30.3 million for fiscal 2020 and EBITDA of $2 million.

The company last raised money in June 2019, when it tapped the market for $20 million in fresh equity to finance its growth plans. That deal was handled by Canaccord and Shaw and Partners.