Openn raises $3.65m to fuel North American expansion
Investors have backed property technology company Openn’s plans to progress its North American expansion and refine its product offering by supporting a $3.65m placement.
The company has received firm commitments from sophisticated and professional investors for the placement of 53,676,471 new shares priced at 6.8c each.
Openn Negotiations (ASX:OPN) will use proceeds from the placement to fund expansion of its subscription-based Software as a Service solutions (SaaS) for the real estate sector in North America.
It will also refine its software platform to meet the requirements of agents in North America.
The company had signed a SaaS agreement with Boston-based real estate group RE/MAX Revolution in late November, the first North American real estate agency to go-live with property listings using Openn in October.
“This funding round will allow Openn to convert the successful pilots with key US and Canadian industry stakeholders into meaningful commercial outcomes,” managing director Peter Gibbons said.
“The Openn team is progressing relationships with new potential strategic partners whilst preparing to launch a transformational product roll-out collaboration with the Canadian Real Estate Association.
“Over the next few months, shareholders can expect the Openn North America business to deliver a pipeline of rewarding news flow which validates the company’s investment in the region.
“In the Australia/New Zealand market, we’re transitioning to a subscription-based monetisation model while continuing to progress integrations with strategic partners that should set us up for rapid scale growth.”
The placement will be issued in two tranches with the first 29,535,823 issued under ASX listing rule 7.1 and 22,375,942 issued under listing rule 7.1A.
Another 1,764,706 shares will be issued to the company’s directors and is subject to shareholder approval.
Investors will also receive one free attaching option exercisable at 10c and expiring two years from the date of issue for every two shares that they subscribe for.
This article was developed in collaboration with Openn Negotiations, 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.