The Catapult Group International Ltd (ASX: CAT) share price is dipping lower today following an update on its Share Purchase Plan (SPP).
At the time of writing, the sports analytics and wearables company's shares are down 2.9% to $1.84.
Share Purchase Plan complete
According to its release, Catapult advised it has successfully completed its SPP following overwhelming support from shareholders.
Around 1,200 valid applications were received, totalling in excess of the original $5 million offer. However, management decided to increase the SPP's offer size to approximately $8.5 million. This will result in around 4.2 million new ordinary shares being added to the company's registry.
The issue price listed at $1.90 for each share, reflecting the same price paid by investors under the equity placement.
Catapult raised $36.4 million in an underwritten institutional placement late last month, with 24.5 million shares issued.
In total, the company received $44.9 million, consisting of both placements as well as the director placement (subject to shareholder approval).
The funds will be used in the strategic acquisition of leading sports software video solutions provider, SBG Sports Software (SBG). In addition, the remaining monies will be allocated towards accelerating Catapult's growth strategy, investing in technology, product, and data science.
Normal trading of the SPP shares is expected to occur tomorrow, Wednesday 21 July.
Catapult CEO Will Lopes touched on the outcome of the SPP, saying:
I am extremely grateful for the support and loyalty of our retail shareholders who subscribed in strength for this SPP.
The funds raised from the SPP complement our recent successful institutional placement, enabling Catapult to accelerate its growth strategy. These are extremely exciting times for Catapult, and I look forward to the Company delivering on this accelerated growth strategy and our enormous SaaS growth opportunity.
About the Catapult share price
It's been an interesting year for Catapult shares, having moved in circles since this time last year. Over the last 12 months, the company's share price has increased by more than 30% but is relatively flat year-to-date.
On valuation grounds, Catapult commands a market capitalisation of roughly $414 million, with approximately 224 million shares outstanding.
