Nearmap (ASX:NEA) shares in trading halt pending capital raise

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Nearmap (ASX:NEA) shares will be placed in a trading halt as the company proposes an equity capital raising by way of an institutional placement.

Nearmap says it anticipates the trading halt will remain in place until the earlier of such time as it makes an announcement to the market in relation to the outcome of the Placement and the commencement of trading on Monday, 10 September 2018.

The Nearmap share price is trading at close to all-time highs, having gained almost 200 per cent in the last 12 months, far our-pacing the 9.5 per cent gain for the ASX 200 index in the same period.

Source: The Capital Club — click here for full NEA chart

Last month Nearmap said the market for aerial imagery data is significant, expanding and global in nature. On that basis, the company expanded its operations into the US, with Nearmap now generating record growth in its subscription portfolio, in excess of that from Australia, which itself experienced near record profit growth.

Nearmap reported revenues jumped 32 per cent to $53.6 million, and the net loss after tax was $11 million as Nearmap continues to invest in its business. No dividends were declared. Nearmap ended the year with approximately $17.5 million in cash and no debt.

Nearmap also recently announced its expansion into New Zealand.

Nearmap shares don’t look cheap, but these 3 shares do…

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

Nearmap was not one of them, but the list does include one tiny gold mining stock, and the company one top fund manager calls the cheapest stock in the ASX 100.

Find out why these 3 Cheap and Good Stocks could be better buys than Nearmap. But you better hurry… these stocks may not stay cheap for long.

See the 3 stocks

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Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
Bruce Jackson has 30 years of hands on investing experience. He is passionate about stock market investing, running his own portfolio and SMSF. His focus is on small cap growth stocks. You can contact Bruce at brucej@thecapitalclub.com.au