Urbanise.com Annual Report 2019

19. Issued capital and reserves 2019 $ 2018 $ Issued capital and contributed equity 682,497,724 (2018: 530,831,549) Fully paid ordinary shares 97,634,813 93,821,852 No. 2019 $ No. 2018 $ Ordinary shares Opening balance 530,831,549 93,821,852 353,887,699 87,173,208 Rights issue (i & ii) 151,666,175 4,084,282 176,943,850 7,077,754 Share issue costs – (271,364) – (429,110) Closing balance 682,497,724 97,634,813 530,831,549 93,821,852 (i) On 12 October 2018 Urbanise completed a fully underwritten rights issue of 151,666,175 shares at an issue price of 2.7 cents per share, raising funds of $4,084,282. The rights issue closed with 66,363,106 shares issued to existing shareholders and 85,303,069 to the underwriters, KTM Capital Limited. (ii) On 28 November 2017 Urbanise completed a fully underwritten rights issue of 176,943,850 shares at an issue price of 4 cents per share, raising funds of $7,077,754. The rights issue closed with 103,715,686 shares issued to existing shareholders and 73,228,164 to the underwriters, Argosy Capital Limited and KTM Capital Limited. Argosy Capital Limited increased their shareholding to 33.74% following the rights issue. Capital management The Group manages its capital to ensure that all entities in the Group will be able to continue as a going concern while maximising the return to stakeholders. The Group’s overall strategy remains unchanged from the 2018 financial year. The capital structure of the Group can, at various times, consist of cash and cash equivalents and equity attributable to equity holders, comprising issued capital, reserves and accumulated losses. None of the Group’s entities are subject to externally imposed capital requirements. Operating cash flows are used to maintain and expand operations, as well as to make routine expenditures including tax and general administrative outgoings. Reserves Foreign currency translation reserve This reserve is used to record the exchange differences relating to the translation of the net assets of the Group’s foreign operations from their functional currencies to the Group’s presentation currency (i.e. Australian dollars). They are recognised directly in other comprehensive income and accumulated in the foreign currency translation reserve. Share-based payment reserve The share-based payment reserve is used to record the fair value of performance right shares or options granted to employees and directors as part of their remuneration. The balance is transferred to share capital when share based payments are exercised. Notes to the Consolidated Financial Statements for the year ended 30 June 2019 (continued) 69