Vonex Limited (ASX: VN8) Confirms Performance Rights Vesting
Performance Rights Vesting
Telecommunications innovator Vonex Limited (ASX: VN8) has announced that performance rights will vest for CEO Ian Porter and Directors Brent Paddon and Stephe Wilks. This decision follows MaxoTel’s acquisition of over 50% of Vonex’s capital as part of its on-market unconditional takeover offer. The vested rights will convert into ordinary shares and will be sold on market while the takeover offer remains active.
Takeover Offer Status
The Vonex Board continues to recommend that shareholders accept the MaxoTel offer, priced at 4.4c per share. This offer has been extended until the close of trading on 28 January 2025. Conversely, the Board advises shareholders to reject the Swoop Telecommunications off-market conditional offer, as it cannot be fulfilled in light of MaxoTel’s majority interest.
Performance Highlights for 1H FY25
In a preliminary update regarding the first half of FY25, Vonex reported revenue of $23.1 million, a slight decrease from $24.3 million the previous year. However, gross profit also reflected a decline to $10.22 million from $10.76 million. Notably, the EBITDA improved to $2.55 million, increasing the EBITDA margin to 11%, up from 9%. Cash reserves increased from $1.9 million to $2.96 million, with debt remaining steady at $23 million.
The Board anticipates further commentary on these financials in the upcoming Quarterly Update and Appendix 4C, scheduled for release later this month.
Debt Facility Review
In addition, the Board confirmed that the repayment of the debt facility has been accelerated following the change of control. Current discussions are ongoing regarding repayment options, which may involve engaging with alternative lenders or considering a potential capital raise for a significant part of the $23 million outstanding.
This announcement has been authorised for release by the Board of Vonex Ltd.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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