Harvest Technology teams with Alto Capital to boost funding

Harvest Technology Group appoints Alto Capital as its corporate advisor
Alto has confirmed a further $2m investment from an existing investor
Funding will support Harvest Technology’s three-year pathway to profit plan

Special Report: Harvest Technology Group, a provider of tech solutions to overcome challenges associated with remote video and data streaming, has appointed Alto Capital as its corporate adviser.

Harvest Technology Group (ASX:HTG) said Alto would provide corporate advisory services to the company for an initial period of two years, with consideration in shares and options to align with shareholders, and payment in options contingent on completion of an additional $2m of funding.

Firm commitments for $2 million

Alto has confirmed commitments for an additional $2m of fundraising from a sophisticated investor who participated in an earlier funding round for $1.2m, bringing their total investment to $3.2M.

The $2m of new funding would be via unsecured convertible notes on the following terms:

Two-year term
15% annual interest, capitalised
$1m of funding to be provided within 30 days
$1m of funding to be provided within 60 days

HTG said when the convertible notes reached maturity the noteholder (investor) had two options:

Redeem the notes and ask for their money back in cash; or
Convert into shares of the company at a fixed price of 2.2 cents/share.

Support for three-year pathway to profitability

HTG provides an array of tech solutions to global customers to help overcome challenges associated with remote video and 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 bandwidth and connectivity environments, such as with satellite.

HTG announced at the end of August it had 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.

“We are very pleased with the ongoing support provided by Alto Capital, including securing a new professional investor to support our three-year pathway to profit plan,” HTG CEO Ilario Faenza said.

Alto Director Alan Lawson said that they are excited about HTG’s three-year plan to deliver sales and profitability, and the potential of a scalable SaaS offering to accelerate sales ahead of schedule.

“Their technology and product offering are unique and are revolutionising the way communications are enabled across degraded and congested networks, opening up significant opportunities across multiple sectors and with global Tier 1 customers,” 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.