Shares of Family Zone Cyber Safety [ASX:FZO] are trading 12.2% higher today, climbing to 46 cents per share.
What caused the price to rise?
Family Zone, which provides cloud-based safety technology for children, today announced a successful share placement worth $5.2 million. In fact, it had so much interest that it had oversubscriptions. Investors from Australia, Hong Kong and Singapore were all vying to get a piece of the company at a discount.
Managing Director Tim Levy commented,
‘We are delighted with the level and quality of interest received in this placement. This is clearly a recognition of our execution and our progress plus the immense opportunities opening up to us.’
Family Zone will now be looking to spend the money wisely. In particular, it is hoping to boost its global presence. Telco partnerships are also on the company’s radar.
What next for Family Zone?
The company went on a tear throughout July, climbing from 35 cents at the start of the month to high of 59 cents on the 19 July, representing a 68.5% upswing. The price quickly cooled off after this, but is still trending favourably.
Family Zone’s recent success can be attributed to a string of successful deals. The biggest being its partnership with Telkomsel. This is Indonesia’s largest mobile provider, with close to 165 million subscribers. That is a lot of potential customers.
Not bad for a company with a $33 million market cap. It’s certainly captured investors’ attention.
Junior Analyst, Money Morning
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