Flying high – Elsight raises $8 million to expedite growth strategies in breakthrough year
Elsight has raised $8 million in convertible notes as it works to build capital to fund its growth strategy with 2022 described as a “breakthrough year”.
Unmanned connectivity technology company Elsight (ASX:ELS) has secured commitments to raise $8 million through an offer of secured convertible notes to a range of well recognised Australian institutions and sophisticated investors.
Under the terms of the convertible note subscription deed, subscription monies will be advanced to the company in two tranches.
The first tranche of $6m will be advanced to the company within 30 days. The final tranche of $2m will be advanced subject to the company receiving shareholder approval.
Unless converted by a noteholder prior, all convertible notes outstanding must be repaid in full on maturity.
Gleneagle Securities acted as lead manager to the capital raise, with a fee of 4% of funds raised.
Funds raised from the offering will strengthen Elsight’s balance sheet and enable the company to execute on growth initiatives.
During 2022, Elsight has signed several multi-year commercial agreements with various partners and while initial orders have been received, the company is expecting multiple repeat orders under these agreements.
Among key contracts to supply Elsight’s globally leading platform Halo that delivers fast, secure end-to-end data transmission and to ensure safe continuous flying Beyond Visual Line of Sight (BVLOS) is one with DroneUp.
DroneUp was chosen by US Shopping giant Walmart to enable drone delivery of groceries and other supplies including Covid-19 test kits to US households.
Funds raised will enable the company to continue its growth strategy and fund additional capital expenditure to ensure it is able to satisfy the unmanned market demands while heading for mainstream commercial adaptation.
Funds raised will also be applied to general working capital requirements of the business as it continues to grow and scale.
Elsight CEO Yoav Amitai said CY22 has been a breakthrough year for Elsight as it delivered several commercial agreements and laid the foundations for further growth as the unmanned industry continues to push towards mainstream commercial adoption in various sectors.
“The company is expecting several repeat orders with our partners over the near term and this capital raise ensures we are well placed to continue to position Elsight as market leader,” Amitai said.
“I would like to thank our shareholders and new investors for supporting the company through this next exciting growth phase for the business.”
This article was developed in collaboration with Elsight, 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.