NZX listed technology company Rakon has made a $A1.8m ($1.95m) profit by selling down its shareholding in Thinxtra, the Australian company rolling out low powered wide area networks for IoT using the Sigfox technology in Australian and New Zealand
Rakon has announced the sale of 199,242 Thinxtra shares for $A3.0m. The sale is conditional on the completion of Thinxtra’s pre-emptive rights process for all shareholders, which is expected to conclude by the end of November.
Rakon said the majority of shares had been sold to new Thinxtra shareholders who missed out on the Thinxtra recent Series-B capital raising, which was over-subscribed. It described new shareholders as institutions having a strategic interest in the IoT.
Rakon said the sale would realise a profit on its initial investment of $A1.8m before costs, representing a return on initial investment of 257 percent.
The sale will leave Rakon with 18.3 percent of Thinxtra. It said the proceeds from the sale would be used to retire debt.
Rakon took an initial 11 percent stake in Thinxtra for $A800,000 in December 2015. In April 2016 it lifted its investment to $A5.8m giving it a 63.8 percent stake. Thinxtra’s series B fund raising in June 2017 reduced this to 23 percent.
Rakon CEO Brent Robinson said there could be a demand for Rakon to sell more shares and the company would consider doing so.
“We remain committed to being a substantial investor in Thinxtra and are positive about the company, the IoT and future returns from our investment,” he said.