ThinkSmart Completes $16m Equity Raising

ThinkSmart Limited (ASX:TSM), a leading international computer and office equipment financing company, today announced the successful completion of the retail component of its fully underwritten $16 million capital raising.

The 1 for 5 Retail Entitlement Offer component of the raising closed on 26 October 2010, raising approximately $4.1 million. This followed the completion of the institutional placement and institutional component of the entitlement offer which raised approximately $11.9 million.

The funds raised will provide the initial capital commitment required to support the establishment of new funding structures for ThinkSmart’s expansion into the UK consumer market and new growth opportunities in the Australian business.

“Both the retail and institutional offers were well oversubscribed demonstrating strong support for ThinkSmart’s UK and Australian growth plans,” said Ned Montarello, Executive Chairman and CEO of ThinkSmart. “We launched the first of these initiatives – our new Infinity consumer product – through 683 Dixons Retail stores in the UK last week.

“The decision to raise equity to support ThinkSmart’s new funding structures highlights the depth of organic growth opportunities available to ThinkSmart.”

The Retail Entitlement Offer was well supported by existing retail shareholders, with applications for approximately 9.6 million new shares received representing a take-up of approximately 75% by eligible retail shareholders. Applications for new shares in excess of entitlements resulted in the offer being well oversubscribed and accordingly, in the interests of fairness to all shareholders, some applications for Additional New Shares have been scaled back on an equal basis relative to existing holdings.

The shares issued through the retail component of the capital raising are expected to be issued on Thursday 4 November and commence trading on the ASX the next day. This will result in the company issuing approximately 8.2 million shares.