Knosys joins the funding party with new $3m round, shares jump
Link copied to
Workplace management company Knosys (ASX:KNO) has joined the capital markets pre-Christmas party, announcing a share placement which led to a strong rally at the opening bell.
KNO shares jumped more than 25 per cent to a new multi-year high of 17c.
The company raised $3m from a network of sophisticated investors including a microcap investment fund. Subject to shareholder approval at a general meeting, the company will raise an additional $100k via the issuance of 650,000 to directors.
Knosys’ product range includes software solutions that help companies group information related to corporate management such as standard operating procedures and work practice guidelines.
The company says its KIQ Cloud platform helps drive digital efficiencies by “ensuring all forms of knowledge are accurate, relevant to the user, compliant and easy to find.
Like other tech stocks, the company has posted strong gains since its share price fell to just 3c at the height of the March selloff.
Today’s price action bring’s the company’s post-Covid rally to almost 500 per cent.
For the September quarter, Knosys booked $2.1m of cash receipts and reported positive net operating cash flows of $1.1m. The company said it will deploy the extra funds to accelerate growth in its existing product channels as well as for new acquisition GreenOrbit.
KNO acquired GreenOrbit earlier this month in a share-based deal which valued the company at around $5m.
GreenOrbit provides SaaS-based workplace intranet solutions for secure internal communications, with a client base that includes Harvey Norman and Webjet and Audi.
Knosys said part of its new $3m funding round will also be allocated to “transaction costs related to the GreenOrbit acquisition and for general working capital requirements associated with the expanded local and overseas operations of the Knosys group”.
KNO managing director John Thompson said the additional capital will give the company a funding base to purse its multi-channel product strategy across knowledge management and intranet services.