At time of writing, Spirit’s share price is trading at 23 cents, up 2.22% .
The facility gives the telecommunications company added funding, so it can act on its existing acquisition pipeline companies faster.
Is Spirit’s rural Australia’s 5G darling?
Currently, Spirit is working to deliver 5G connectivity to Victorian regional town Morwell (as stated in their contract), which has a population of around 13,000. Once successful, this will help decrease the digital divide between regional and metro areas.
There is also the possibility that spirit could extend its services to neighbouring towns such as Traralgon and Moe.
And could in time be rolled out in other regional areas all over rural Australia.
Spirit’s Managing Director Geoff Neate spoke about ST1’s funding, saying:
‘We are pleased to be working with CBA who clearly understand the potential of our business and are supportive of our acquisition roadmap. This expanded financial facility, together with the underwriting of $5.6 million options [ASX:STIO] by Shaw & Partners, will provide near term funding of a net increase of nearly $10M and the flexibility to advance our acquisition and organic growth targets.’
CBA’s backing and funding could be a good sign for Spirit’s share price and shareholders — as the 5G market is highly competitive when it comes to seeking finance. It could mean Spirit provided CBA with strong fundamentals.
Spirit’s share price 2019 outlook
While, Spirit’s recent 5G news is all very exciting for rural Australians and shareholders alike, it may take some waiting time to see the full fruition.
But when you’re investing in a growth company like Spirit, that’s something you should anticipate.
In the meantime, its integration of LinkOne Group and building connect is already in progress, where ST1 is upgrading the networks and supporting the sales team in addressing the ‘market demand for Spirit’s Sky-Speed business products.’
More to come.
For Money Morning
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