Australian Hotspot Webphone developer and operator, pieNETWORKS Limited announces that it (PIE or the Company) has agreed the terms for a placement of new shares at an issue price of 2 cents per share to raise $3,000,000, before costs (Placement). The Placement will be made to a single institutional investor and was arranged by CPS Securities. The Placement of 150 million new shares will be made in two tranches with the initial tranche of 100 million shares to be completed by 31 March 2010 in accordance with ASX Listing Rule 7.1. The second tranche of 50 million new shares will be conditional upon shareholder approval at a general meeting to be convened for early May 2010. Upon completion of the second tranche placements, the new shareholder will have an interest in the issued capital of PIE equating to 17.6%. Funds raised by the placement will be used in the deployment of the Companys existing Hotspot Webphone network in New Zealand and to support the Companys activities in developing new markets for its products and services in Australia and other overseas markets. PIE managing director Mr Campbell Smith said, that he was delighted to welcome the new shareholder and believed that the Placement was a tremendous endorsement of the business model and commercialisation strategy currently being implemented by the Company.
