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Stargroup Ltd's Shareholders Take Up 97.4% Of Entitlement Offer

Stargroup Ltd (ASX:STL) has now closed and finalised its 1-6 rights issue, with 97.4% take-up by existing shareholders with a total of $2.84 million being raised.

Todd Zani, CEO and executive chairman, commented: "The company was pleased with the strong support and take up of shares from existing shareholders, particularly given the Brexit and its impact on our local markets.

"This is an excellent result for the company and completes our third acquisition in the last year."

Funds from the offer will be used to complete the final payment for the CashmyATM value accretive acquisition.

The acquisition delivers 95 ATM's to the group's network, swelling the total to over 365 machines processing 2.9 million transactions annually.

The acquisition will build on the company's 9 consecutive quarters of revenue growth with the recent March quarter recording a record 51% increase on the prior December quarter.

Annualised revenue for the expanded ATM network is projected to increase to $11.4 million in FY17 from $9.3 million.

Rights issue details

Stargroup received valid applications of $2,842,987, comprising $1,439,602 (39,988,945 new shares) and $1,403,385 (38,982,936 new shares) from shareholders applying for additional shares under a shortfall facility.

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