• $21m capital raise via placement at $0.06 per share
• Acquisition of DXLabs, a digital transformation business
• Expanded sales pipeline of ~$75m, including $47m NATO contract

Vection Technologies Ltd (ASX:VR1) has raised $21m via a single tranche, non-underwritten placement of approximately 350 million new shares to institutional, sophisticated and professional investors at $0.06 per share, a 6.69% discount to the 15-day VWAP. The strong investor demand highlights the quality and scale of Vection's integrated software potential, management's execution capabilities and sales pipeline. Alongside the placement, Vection has executed a binding offer to acquire 100% of Digital Experience Labs Pty Ltd (DXLabs), a fast-growing Australian digital transformation and solutions business with enterprise customers in government, insurance and adjacent sectors. The acquisition of DXLabs adds immediate revenue and EBIT in Australia, strengthening Vection's APAC capability and unlocking cross-sell opportunities. Vection's updated sales pipeline under negotiation is currently around $75m, supported by the NATO framework agreement being upsized to a potential $47m and growing defence sector traction. The company is now in a strong net cash position, providing a solid foundation to tender for large contracts and execute on its sales pipeline. Vection's aspirational revenue targets are underpinned by client retention, pilot program expansions and cross-selling opportunities.

Vection has not provided any specific forward-looking financial guidance in the announcement.

Vection has not provided any detailed forward-looking outlook in the announcement, beyond highlighting its expanded sales pipeline and the acquisition of DXLabs to strengthen its APAC capability and unlock cross-sell opportunities.