ATV Placement and capital raising completion
| Stock | Activeport Group Ltd (ATV.ASX) |
|---|---|
| Release Time | 21 Jan 2025, 8:22 a.m. |
| Price Sensitive | Yes |
Activeport Raises $6.1M in Placement and Rights Issue
- Activeport received $6.1M in commitments, including a $2M placement to new institutional investor MWP Partners
- Funds will strengthen Activeport's balance sheet and provide working capital for revenue growth
- Activeport plans to hire additional sales and software development staff to accelerate global growth
Activeport Group Ltd (ASX: ATV) is pleased to announce it has received over $4.1M from its recent renounceable rights issue (Rights Issue) plus a binding commitment from MWP Partners Limited, a Hong Based fund, and its associates (MWP Partners) for an additional $2.0M, raising over $6.1M in total. The Company has decided to close the shortfall offer relating to the Rights Issue. To accommodate the substantial contribution from MWP Partners, the Company offered a Placement to MWP Partners of $2.0m in lieu of participating in the Rights Issue shortfall offer. The issue price for the Placement is 1.624 cents which represents at a 4% discount to 30-day VWAP. The funds raised from the Rights Issue and Placement will strengthen Activeport's balance sheet and facilitate accelerated growth. The Company plans to hire additional sales and software development staff which will strengthen both the Australian SaaS business and accelerate software sales to the global telco and data centre market. Activeport Chairman and CEO, Peter Christie, said: 'This Placement is a transformative milestone for the Company as we strive to become a major player in the global enterprise software market. I'm particularly pleased to welcome institutional investor MWP Partners to the register and thank them for their support to help grow our business.' MWP Partners Chief Investment Officer, Angus Walker, said 'We are excited by the opportunity with Activeport and believe that the Company is at the early stage of its growth cycle and inflecting profitability. We look forward to taking a supportive role and raising the profile of the Company as it expands its presence within the telco and data centre industries.'
Activeport expects the funds raised to strengthen its balance sheet and provide working capital to support accelerated revenue growth in the global telco and data centre markets.
Activeport plans to use the funds to hire additional sales and software development staff, which will strengthen its Australian SaaS business and accelerate software sales to the global telco and data centre industry.