Pentanet Secures Placement to Support Cloud Growth
Released
Released
Announcement PDF
ASX: 5GG | ASX ANNOUNCEMENT
22 MARCH 2024
PENTANET SECURES PLACEMENT TO SUPPORT CLOUD GROWTH
HIGHLIGHTS:
•
Pentanet has received binding commitments to raise $4.28 million (before costs), $4.0m after costs.
•
The Placement was supported by multiple international and domestic institutional and high-net worth
investors, several of which have a focus on high-growth technologies.
•
Proceeds of the Placement will be applied towards:
o
CAPEX for NVIDIA cloud servers and infrastructure: $3.0m
o
General working capital & costs of the Placement: $1.28m
Pentanet Limited (ASX:5GG) (Pentanet or Company) is pleased to announce that it has received binding
commitments for a placement of shares to multiple international and domestic institutional and high-net worth investors
(Placement). The Company will issue 59,444,445 new fully paid ordinary shares under the Placement at an issue
price of $0.072 per share (Issue Price). The Placement bookbuild saw strong demand from Australian brokers with
commitments from both existing and new investors providing an endorsement of the Company’s growth plans.
Demand for the placement exceeded the total amount the Company sought to raise.
Proceeds of the Placement will be used by Pentanet to invest in NVIDIA cloud servers and infrastructure,
working capital for growth and the costs of the Placement.
Under the amended terms of the NVIDIA GeForce NOWTM Alliance Partner Agreement (GFNA Agreement or
Agreement), Pentanet will continue being the exclusive distributor for GeForce NOW in Australia, with New
Zealand included as a serviceable territory, and a pathway to Indonesia on a non-exclusive basis.
Pentanet Limited has announced that the Company has also worked with NVIDIA on the upgrade of its Gen 3
cloud infrastructure with NVIDIA L40 GPUs to bring Pentanet into the NVIDIA Graphics Delivery Network
(GDN).
The strategic direction is expected to drive additional growth and expand Pentanet’s cloud gaming market share,
whilst opening new revenue streams.
Commenting on the Placement, Pentanet Managing Director, Stephen Cornish, said: “The recent updates to
our NVIDIA GeForce NOW opportunities abroad, as well as becoming a part of the global NVIDIA GDN puts us
in a unique position as a Company to be further positioned in the supply ecosystem of a growing industry. We
are grateful to existing shareholders and welcome the addition of new institutional investors into the Company
who are aligned with our future growth opportunities.”
Placement Details
The Issue Price of $0.072 per share under the Placement represents a 19.6% discount to the 15-day volume weighted
average price of Pentanet shares up to and including 19 March 2024 and a 12.2% discount to the last traded price of
Pentanet shares (as at 19 March 2024).
Shares under the Placement will be issued under the Company’s available ASX Listing Rule 7.1 (22,071,724 shares)
and 7.1A (37,372,721 shares) placement capacity and will rank equally with existing shares on issue. Settlement of the
Placement is expected to occur on or about 2 April 2024.
PAC Partners Securities Pty Ltd acted as lead manager.
investors@pentanet.com.au
+61 8 9466 2672
Unit 2, 8 Corbusier Place,
Balcatta WA 6021
ABN: 29 617 506 279
Use of Funds
Proposed Use of Funds
$M
CAPEX for NVIDIA cloud servers and infrastructure
3.0
General working capital & costs of the Placement
1.28
Total
4.28
The proposed use of funds may be subject to modification on an ongoing basis depending on the results obtained from the
Company's activities. Due to market conditions, the development of new opportunities and/or any number of other factors,
actual expenditure levels may differ from that disclosed above.
Further Information
Nothing contained in this announcement constitutes investment, legal, tax or other advice. Investors should seek
appropriate professional advice before making any investment decision.
An Appendix 3B for the proposed issue of shares under the Placement will follow this announcement.
This announcement has been authorised for release by the Managing Director of Pentanet Limited, Mr Stephen Cornish.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Mr. Stephen Cornish
Managing Director
Mr. Arron Canicais
Joint Company Secretary
Ms. Mart-Marie Derman
Chief Financial Officer
About Pentanet
Pentanet is a Perth-based, growth-focused telco delivering high-speed internet to a growing number of subscribers by providing nextgeneration internet speeds. This is achieved through Pentanet's market-leading private wireless network, the largest in Perth, as well as
reselling fixed-line services such as nbn® and Opticomm.
The Company’s flagship wireless network has benefits for both customers and investors, offering an outstanding customer experience and
a fixed wireless product that is technically superior to most of the nbn with attractive margins for investors. This sets Pentanet apart from
most broadband providers, which typically only resell the nbn.
Pentanet is also part of the rollout of the next wave of subscription-based entertainment services – cloud gaming. The Company's Alliance
Partner Agreement with NVIDIA allowed Pentanet to be the first to bring their GeForce NOW technology to Australia in 2021. Since
launch, the platform has amassed over 530,000 users.
Pentanet invites existing and prospective shareholders to join the conversation within the Company’s interactive Investor Hub at
investorhub.pentanet.com.au/
.
investors@pentanet.com.au
+61 8 9466 2672
Unit 2, 8 Corbusier Place, Balcatta
WA 6021
ABN: 29 617 506 279
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