The Dubber Corp Ltd (ASX: DUB) share price has returned from its trading halt and is tumbling lower on Friday.
In afternoon trade the cloud-based call recording services provider's shares are down 5.5% to $1.18.
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Why was the Dubber share price in a trading halt?
Dubber requested a trading halt on Wednesday so it could launch an institutional placement.
This morning the company revealed that it received firm commitments from institutional, professional, and sophisticated investors to raise $35 million at $1.10 per share. This represents a 12% discount to its last close price.
Dubber will now look to raise a further $6 million via a share purchase plan at the same price. This offer is scheduled to close on Friday 6 November 2020.
Why is Dubber raising funds?
Dubber revealed that the proceeds from its capital raising will be used to accelerate its global growth, support product development, pursue strategic merger and acquisition opportunities, and for general working capital.
The company's CEO, Steve McGovern, was very pleased with the success of the placement and appears confident that the funds will help accelerate Dubber's growth.
He commented: "Dubber has a leadership position globally as the unified call recording platform of choice for service and unified communications solutions providers. We will meet accelerating demand globally with the expansion of our sales, marketing and product development efforts – and pursue M&A opportunities that are in the market."
"Unified Call Recording is crucial to Enterprises meeting compliance requirements, boosting sales and CX performance; and, unlocking the potential in voice data. Dubber is the only solution capable of doing this globally, from within the network, eliminating the needs for complex hardware, software and services," he added.
Mr McGovern concluded: "We are delighted with the support shown from investors, with bids received well in excess of amounts raised under the Placement."
