QMASTOR Launches Share Purchase Plan
August 28, 2009
QMASTOR Limited (ASX:QML) is pleased to announce the QMASTOR Share Purchase Plan (SPP), pursuant to which eligible shareholders may apply for up to $15,000 of ordinary shares at the lesser of:
• $0.32 per share; or
• a 10% discount to the volume weighted average price (VWAP) over the 5 business days leading up to and including the closing date for the offer
The SPP is being offered to QMASTOR shareholders as at 5pm Sydney time, 9th of September 2009 (the Record Date) with a registered address in Australia or New Zealand (Eligible Shareholders).
Under the SPP, QMASTOR aims to raise up to $3 Million to fund further company growth. The shares allocated under the SPP will be eligible for the 2009 final dividend of 0.5 cents per share.
Shares purchased under the Plan are expected to be allotted on or about 5th of October 2009
Details of the offer can be found below. Full details of the SPP and how to participate are contained in the SPP offer documents to be released shortly.
For further information contact:
Trent Bagnall – Managing Director
Phone: +61 (2) 4908 2222
Email: tbagnall@qmastor.com
Web: www.qmastor.com
Letter from the Chairman
August 28, 2009
Dear Shareholder,
On behalf of the board, I am pleased to invite you to participate in the continued growth of QMASTOR Limited via the QMASTOR Share Purchase Plan (SPP).
The SPP follows our announcement of a record profit of $1.63M for the 2009 year (an increase of 33% on the previous year), revenue growth of 78% to $9.03M and earnings per share growth of 32% to 4.02 cents per share. QMASTOR also announced a dividend of 0.5 cents for the second half making a total of 1.5 cents for the 2009 year up 50% on the previous year.
The company also completed its first acquisition during the year of Coal Link Australia Pty Ltd, now renamed QML Services. The acquisition has contributed positively both in terms of revenue and profit.
We are particularly pleased with the strong financial performance of the company in light of the challenging economic environment.
Looking forward, we believe the company is well positioned to capitalise on a number of exciting growth opportunities. In particular, we are experiencing strong demand for our products in international markets. There is also promising interest in our new complementary products focused on Ports and Terminals (Port Management System) and Advanced Planning and Scheduling (Horizon APS).
To date, QMASTOR has funded its growth from internal cash flow and until the QML Services acquisition, had no debt. However, there is currently the opportunity to accelerate our growth plans and aggressively pursue the opportunities mentioned above. It is for this reason that we are intending to raise up to $3 Million under the SPP. We wish to give existing shareholders an opportunity to participate through this SPP. Specifically, these funds will be used as follows:
• Fund the opening and staffing of our US office in Denver Colorado
• Grow our new South African operations to exploit the full potential for our products and services on the African continent
• Employ additional sales and marketing team members to generate forecast growth both within Australia and overseas
• Invest in our new advanced planning and scheduling system Horizon APS to consolidate market adoption and further increase market share
• Install QMASTOR's suite of products for the new markets and customers of the recently acquired QML Services.
Participating in this offer will allow you to increase your QMASTOR shareholding at a discount to the weighted average market price without paying any brokerage or other charges. Shares acquired under the SPP will be eligible for the 0.5 cent final dividend. To apply for shares under the SPP, please follow the instructions in the enclosed personalised application form. The closing date for the SPP is 28 September 2009.
On behalf of the Board, I invite you to consider participating in the SPP and thank you for your continued support of QMASTOR.
Yours Sincerely,
Ray Miller
Chairman
The Offer at a glance
Key Dates*
Record date: 9th September 2009 The initial date for determining Eligible Shareholders at 5:00pm (Sydney time)
Opening date: 10th September 2009 Offer opens at 9:00am (Sydney time)
Closing date: 28th September 2009 Offer closes at 5:00pm (Sydney time)
Issue date: 2nd October 2009 Shares under Share Purchase Plan are issued
Despatch Date: 5th October 2009 Confirmation of transaction despatched to shareholders (Allotment Notice)
Quotation date: 7th October 2009 Shares are expected to be traded on ASX
*Dates are indicative only and QMASTOR Limited may vary these dates without notice.
Offer details*
Issue price The lesser of:
• $0.32 per share
• A 10% discount to the volume weighted average price (VWAP) over the 5 business days leading up to and including the closing date for the offer
Minimum Application Amount A$1,000
Maximum Application Amount A$15,000
Permitted Application Amounts A$1,000, A$3,000, A$5,000, A$10,000 or A$15,000