Internet kiosk developer pieNETWORKS (ASX:PIE) has revealed plans to raise $2.15 million through a rights issue.
The company has announced a 1-for-8 non-renounceable entitlement issue at two cents per share.
The proceeds will be used to fund the ongoing production and deployment of its Hotspot Webphone joint internet kiosk and internet phone terminals.
The company said initial feedback from Telstra (ASX:TLS) from its ongoing four-month evaluation of the Webphones had been positive.
PIE shares slumped 4.35 per cent to $0.022 during Thursday's trading.
The offer has been fully underwritten by CPS Securities, and pieNETWORKS said it had agreed to pay an underwriting fee of five per cent.
The rights issue will result in the issuance of 107.6 million new shares, compared to the current 860.7 million currently on issue.
The offer period closes on 18 March, and shares will be dispatched the following week. The $2.15 million figure excludes the costs of conducting the offer, pieNETWORKS said.