Intermoco to raise $1.2m in rights issue

Smart grid technology and utilities management developer Intermoco (ASX:INT) has launched a 1-for-9 rights issue to raise $1.2m in capital

Smart grid technology and utilities management provider Intermoco (ASX:INT) has announced plans to raise nearly $1.2 million in a rights issue.

Intermoco has offered shareholders the chance to buy one new share for every nine shares they hold for $0.005.

The offer, at the same price as a recent placement to sophisticated investors, represented a 16 per cent discount on the Intermoco share price of $0.006 as of Friday.

The number of shares to be issued represents a little under 10 per cent of Intermoco's existing share capital.

The company plans to use the funds for working capital, and to redeem the balance and pay interest on $1 million in convertible notes issued to Belgravia Strategic equities.

The company will stop taking applications on 18 February, and plans to dispatch holding statements on February 2011.

The rights issue has been fully underwritten by Bell Potter Securities. Only Australian and New Zealand shareholders will be eligible to take part in the issue.