• Harvest Technology has raised $2.2m since the start of FY24 to be used on growth strategies
  • Company said existing and new investors have supported the company
  • Harvest Tech has released its FY24 results as it works towards profitability in FY27

 

Special Report: Harvest Technology Group has raised $2.2m via sophisticated investors since July 1 to refocus on growth with the company completing most of a restructuring program as part of its three-year plan to profitability.

Harvest Technology Group (ASX:HTG) said it has support of existing investors including long-term secured note holders, along with new investors, which have included family offices.

HTG provides tech solutions to overcome challenges associated with remote video & data streaming, such as high latency and bandwidth constraints.

The company’s products work to optimise network bandwidth and ensure high-fidelity communication even in ultra-low connectivity environments.

HTG said funding was achieved via a range of debt and convertible note instruments including:

  • $420,000 of unsecured short-term debt (repayment by 1st December 2024).
  • $283,000 secured against the FY24 R&D Loan Note facility, 15% annual interest, no conversion of principal, interest convertible at note holder’s option.
  • $1.3M of Convertible Loan Notes secured against the FY25 R&D Rebate, 15% annual interest, 2.2c conversion; and
  • $200,000 of Convertible Notes unsecured with a 2-year term, 15% annual interest, 2.2c conversion.

HTG said it will continue with its fundraising efforts, with a target of an additional $1.8m through the current two-year unsecured notes.

However, the company said it reserves its rights to pause or cancel the remainder of the issue depending on market conditions.

HTG said long-term secured note holders, in addition to rolling over their existing notes for a further two years to November 2026, also participated in the raising of new capital.

 

FY24 results update

HTG reported an EBITDA loss of ~$4,785m for FY24. Current Assets were $3.23m with an improvement primarily due to:

  • $1.59m from the R&D tax incentive receivable
  • $950kfrom funds received from investors; and
  • $1.25m from funds committed but not yet received from investors, expected by September 3.

HTG also reported a $3.66m improvement in current liabilities, mainly due to a $3.06m net adjustment of borrowings.

Overall, the company said there has been an improvement from net current liabilities of $6.58m to net current assets of $300,000.

 

‘Greater focus on growth’

HTG in July published a three-year pathway to profit plan, which CEO Ilario Faenza said has received positive feedback from investors. Investors have backed the strategy, with its shares 26% up YTD.

Harvest will target profitability in FY27, accelerating annual revenue to exceed $10m by FY27.

Faenza said he was pleased with the FY24 result and the company was on the right track.

“I am pleased with the result, particularly that the majority of our restructuring is now complete,” he said.

“Combined with the successful fund-raising, this enables the Harvest team to place greater focus on growth without any distractions.”

A professional company director and turnaround specialist with substantial experience spanning more than 30 years, Faenza joined the company in January this year as a non-executive director.

He acted as interim CEO before being appointed to the role permanently earlier this month.

Faenza kicked off his career as an IT engineer in the 1980s, progressing to senior management, COO and CEO roles.

More recently, he has focussed on assisting high growth startup companies to achieve  commercialisation and help guide executives to build sustainable companies.

He told Stockhead recently that the company’s core technology is unique.

“To create a protocol like this very few companies in the world manage to do that and I believe it would be one of very few Australian companies to do it,” he said.

“The fact that it was Australian built, Australian coded, Australian operated, Australian supported is something we can be very proud of.”

He says his role is now to promote the commercialisation of HTG’s technology and to grow the company.

“I’m here for the commercialisation and to build a truly sustainable global technology company,” he said.

 

This article was developed in collaboration with Harvest Technology Group, 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.

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