Deakin Financial ServicesGroup has undergone a major capital raising exercise to fund its plans for an increased national presence.
The group will generate $5.4 million by July this year under an agreement with Falkiners Stockbroking to underwrite outstanding options over ordinary shares due to expire on June 30 this year.
Deakin will also place 5,500,000 ordinary shares at $0.15 per share raising a further $825,000 in additional capital.
According to theAustralian Stock Exchange, the investors involved in the two linked transactions are part of a panel established by Falkiners Stockbroking and involve a number of “small cap” specialist institutional investors.
Deakin chairman Rob Hunwick says the capital raising is aimed at facilitating its desire to position the company for sustained growth and increase Deakin’s presence nationally.
“We are building an independent national financial adviser group. Deakin advisers will soon have access to substantial additional resources and will benefit from a larger organisation that operates nationally and independently,” he says.
Hunwick says this means advisers will have access to an unlimited range of products and services, including those provided by a variety of alliance partners.
“A national independent operation will provide Deakin with many benefits such as economies of scale, critical mass and competitive edge. Advisers will benefit from extensive range of products and services that will enhance their relationships with clients,” he says.
