Activeport Group Completes $1.9M Placement to Accelerate Global Expansion
ACTIVEPORT GROUP LTD (ATV) Share Update August 2024 Thursday 8th
Activeport Group Secures $1.9M Funding for Global Expansion
Activeport Group Ltd (ASX: ATV) has successfully completed a heavily oversubscribed $1.9 million placement to fund its expansion into Southeast Asia, India, the Middle East, and Africa.
Instant Summary:
- Activeport secures $1.9M in funding through a heavily oversubscribed placement.
- Funds will accelerate growth in network orchestration, SaaS, and GPU streaming.
- Four new telco projects starting in 1H24, with six more under consideration for H2.
- Expansion of the technical team internationally to monetize more opportunities faster.
- Focus on growing recurring revenue base of highly profitable software products.
Funding Details
Activeport Group Ltd (Activeport or the Company) has announced the successful completion of a $1.9 million placement. The placement was heavily oversubscribed, showing strong support from both new and existing investors. This funding will enable Activeport to expand its project delivery capacity into Southeast Asia, India, the Middle East, and Africa.
The placement will result in the issuance of 38,000,000 fully paid ordinary shares at an issue price of A$0.05 per share. Additionally, 19,000,000 attaching options will be issued, subject to shareholder approval, with an exercise price of A$0.10 and an expiry date of 36 months from their date of issue.
Growth and Expansion
The funds raised will accelerate growth across three key channels: network orchestration (MANO), software as a service (SaaS), and GPU streaming. Activeport has four new telco projects starting in the first half of 2024 and six more under consideration for the second half. This additional working capital will allow the company to expand its technical team internationally and monetize more opportunities faster.
Activeport's focus for the fiscal year 2025 is to grow the recurring revenue base of its highly profitable software products. The engineering team has developed new software features across MANO, SaaS, and GPU streaming to meet the expanding requirements of telco customers. As the software capability expands, Activeport aims to extend its market lead and win more new business.
Investor Support
The placement was led by Bridge Street Capital Partners, with SP Corporate Advisory (Spark Plus) from Singapore acting as co-manager. Activeport received strong support from existing Australian investors and excellent new institutional demand from Asian investors. The Directors of the Company have committed to invest a total of A$125,000 in the placement, subject to shareholder approval at a General Meeting expected to be held in November 2024.
Use of Funds
The funds raised from the placement will be used to expand the delivery capability of the business into new regions, deploy software to new customers, cover administration expenses, pay creditors, and for general corporate purposes. The new shares will rank equally with the company’s existing ordinary shares in all respects.
The successful completion of the $1.9 million placement is a positive development for Activeport Group. The funding will enable the company to accelerate its growth and expand into new markets, which could lead to increased revenue and profitability. The strong support from investors indicates confidence in the company's growth strategy and potential.
Investor Reaction:
Analysts are likely to view the successful placement positively, as it provides Activeport with the necessary capital to pursue its expansion plans. The strong demand from investors, both existing and new, suggests confidence in the company's future prospects. However, investors will be keen to see how effectively Activeport can execute its growth strategy and deliver on its promises.
Conclusion:
Activeport Group's successful $1.9 million placement marks a significant milestone in its growth journey. Investors should monitor the company's progress in expanding its project delivery capacity and growing its recurring revenue base. With strong investor support and a clear growth strategy, Activeport is well-positioned for future success.