Adveritas placement snapped up like hot cakes at 13% premium
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Investors continue to demonstrate their support for Adveritas and its digital ad fraud prevention offering by backing a $4m placement that was priced at a 13% premium.
The placement of shares priced at 8.5c was oversubscribed and strongly supported by family offices and new shareholders.
Adveritas (ASX:AV1) plans to use the funds to support growth initiatives given successful recent sales and go-to-market initiatives which underpinned record cash receipts of $887,000 in the second quarter of the 2023 financial year.
These include hiring additional personnel to strengthen its product team to enable further enhancements of its TrafficGuard products and to support customers, commercialise its self-serve product to drive the conversion of Freemium subscribers into paying customers, and grow channel partnerships.
“We are delighted to see the ongoing strong support from our major shareholders, as well as some new investors, as we continue to deliver on our growth strategy,” chief executive officer Mat Ratty said.
“They see and understand the scale of the global opportunity for TrafficGuard. Our strengthened balance sheet supports continued growth in annualised revenue that will underpin a clear path to profitability in the future.
“We are excited by the tremendous growth opportunity ahead, as more companies see how our software can improve their digital advertising and marketing performance by eliminating ad fraud at such a critical time for many organisations across the globe.”
Non-executive director Mark McConnell has committed to participate in the placement with a subscription of 3,529,412 shares that is subject to shareholder approval.
The remaining 43,647,059 placement shares will be issued under the company’s existing ASX Listing Rule 7.1 15% placement capacity.
TrafficGuard is an ad fraud prevention software that targets invalid traffic before it reaches a client’s ad budget.
Its recent increase in cash receipts is due to growing Google Cloud marketplace sign-ups with the company flagging a strong outlook for the 2023 calendar year due to a record pipeline, strong sales momentum and customer demand for new product features.
This article was developed in collaboration with Adveritas, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.