The Updater Inc (ASX: UPD) share price has nearly tripled to $1.40 over the past year and may have further to run after the business announced it will raise $50 million in cash to finance new growth plans.
Updater Inc. provides digital services to North Americans moving home in helping them transfer utility providers or redirect post for example. It boasts that some 17 million households relocate each year in its target U.S. market.
Of the A$50 million it aims to raise it will spend some US$21 million on two moving software companies in the U.S. named IGS Software and Asset Controls Inc. On completion of the deals Updater aims to marry the two software services and rebrand them into a new business as MoveHQ.
Updater will issue new shares to institutional investors at $1.25 each, which represents a 10.7% discount to the recent closing price, with retail investors seeming shut out of the deal.
Updater Inc. is due to return to the ASX boards tomorrow September 7.
