Beonic accelerates growth with $5.5m raise

Beonic to raise $5.5 million in oversubscribed placement and share purchase plan led by Canaccord Genuity and Alpine Capital
The Sydney-headquartered company welcomes New York based venture capital fund Enpar Capital, early supporter of companies including Skype and Brainbox AI
Beonic will accelerate plans to meet rising global demand for its proprietary tech, with a renewed focus on large airports and retail properties

Special Report: Beonic (ASX:BEO) is accelerating its plans to expand its tech to more international destinations, thanks to an oversubscribed $5.5 million capital raise and a share purchase plan.

With the full backing of sophisticated and professional shareholders demonstrated at its EGM late last month, the Sydney-based business will complete a $5 million two-tranche placement led by Canaccord Genuity (Australia) and Alpine Capital. This will be topped up by an SPP for $500,000.

Tipping into the placement is Enpar Capital, a New York based private investment firm that seeks out established, high-potential businesses with strong management teams.

Noteworthy early-stage investments by Enpar over the years have included Skype, Brainbox AI and Informatica Corporation. Enpar will own approximately 13.9% of BEO post-placement.

Beonic has already issued, or will issue, around 210.22 million new shares at $0.022 per share to sophisticated and professional shareholders as part of the placement, and another 17.04 million shares at the same price to its directors. Eligible shareholders for the SPP will be issued one option for every two new shares issued to them.

With the fresh injection of funds and confidence, Beonic will accelerate its plans to meet rising demand for its proprietary tech from major organisations across the globe. It will reinvigorate its focus on large airports and retail properties, where it’s already enjoyed significant success.

The Beonic edge

Beonic gives organisations worldwide real-time data about how their physical environments are being used with a breakthrough platform that’s been likened to Google Analytics for physical spaces.

It does this by bundling up a suite of technologies including WiFi, LiDAR (Light Detection and Ranging), people counting, computer vision and IoT devices – plus contextual data such as weather and sales information. Beonic then enables clients to extract even more value from the information it generates with the help of a team of data science and digital marketing consultants.

BEO is now helping unlock the full potential experience – and profitability – of more than 11,000 venues in 35 countries. Partners include iconic places like JFK, Heathrow, Sydney and Abu Dhabi International Airports, Wembley Stadium, leading US shopping centres owned by Macerich, and even Brazil’s Copacabana Beach.

How the cash will be spent

Beonic will put the new funds towards stepping up development of advanced software and data analytics solutions, restructuring costs, investment in new sales and marketing functions, as well as general working capital.

Commenting on the placement, Beonic CEO Billy Tucker said: “The funds raised from the placement, combined with the previously secured debt facilities from Blue Ventures, will deliver Beonic the capital flexibility to execute on our strategic initiatives and drive the company towards a self-sustaining cash flow position.

“I would like to thank existing shareholders for supporting the placement and welcome the new shareholders to our register. With industry-leading LiDAR technology, a dominant position in the airport vertical and a truly global presence, Beonic has a robust platform for significant growth.

“The strong demand for our solutions was reflected during the last financial year when we secured our largest ever contract via a partnership with Next50, provider of operational infrastructure to the landmark Abu Dhabi International Airport Terminal A project in the United Arab Emirates.”

This article was developed in collaboration with Beonic, 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