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Damstra Holdings Ltd (ASX:DTC) has announced a $20 million capital raise.

Damstra Holdings Ltd (ASX:MXC) is pleased to announce a $20 million capital raise, consisting of full underwritten institutional placement of new fully paid ordinary shares to raise approximately $10 million at $0.34/share and a fully underwritten accelerated pro rata non-renounceable entitlement offer to all eligible security holders to raise approximately $10 million at $0.34/share. The funds raised will be used to support growth in sales capabilities and resources, especially in the North American market, ensure availability of funds for TIKS deferred consideration payment, further invest in development of Damstra?s Enterprise Protection Platform and for the Company?s general working capital purposes.

When an ASX-listed company announces a capital raising, it generally means it is selling more shares to raise money.

More often than not, the shares are sold at a discount to the company?s share price at the time to entice new and existing investors.

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