Up and away: This small cap just boosted its cap raise by 290pc
Special Report: Display and video advertising solution provider engage:BDR has secured an extra $7.2 million in funding to boost its next growth phase.
The company (ASX:EN1) had originally announced a convertible securities agreement with New York-based institutional investor CST Investment Fund in early November to raise $2.1 million by way of convertible loan.
But now, the funding agreement has now been amended, boosted by 290 per cent and raising up to $8.2 million.
That includes $1 million in immediate funding that can be used to significantly increase the company’s revenue through additional publisher payments for incremental revenue growth.
Ted Dhanik, co-founder and chairman, said it was the latest bit of good news for the company, which last week saw its share price rise 200 per cent to 4c by Friday close.
“This significantly improves our balance sheet, capitalises on our recent momentum and shows that the lender has very high levels of confidence in the company,” he said.
Adtech engage:BDR is the brainchild of former Myspace founder Tom Anderson — affectionately known as ‘Myspace Tom’.
It listed on the ASX in December 2017.
The company helps brands and advertising agencies bid for online advertising space automatically, whether on a website or social media platform.
Top advertisers across the globe rely on engage:BDR’s innovative advertising solutions to drive towards their KPIs.
Engage:BDR announced a number of new partnerships and integrations toward the end of last year, including video advertising company Third Presence, and Acuity Ads, a large programmatic real-time bidding and DSP platform.
Mr Dhanik told investors the injection of capital would enable the company to progress the recent integrations from beta testing and into a position to generate significant revenue in 2019.
Engage:BDR uses cash to generate revenue by pre-purchasing and paying for access to premium advertising inventory, then recycles this cash at nearly 50 per cent margin.
It says every incremental dollar is nearly worth two in terms of revenue.
The company will seek shareholder approval within 60 days to issue convertible notes to the investor in replacement for the loan notes.
The convertible notes will have a maturity date 12 months from issue of the loan notes they replace.