Vection Technologies gets a bid from the Italian government
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Software company Vection Technologies (ASX:VR1) continued its strong run this morning, off the back of a new share placement.
The company raised $6m in a placement done at 9c a share.
Vection said the raise was oversubscribed, with $5m allocated to family offices, management and sophisticated investors.
JMC Group — an original equipment manufacturer (OEM) to computing giant Dell Inc — increased its shareholding in Vection by 49 per cent.
And among new investors to join the raise was the Italian government, the company said.
Shares in Vection came out of a trading halt and rose by another 12 per cent, marking a gain of 130 per cent since the start of September.
The rally in VR1 shares commenced shortly after JMC took its first stake in the company, in an on-market transaction on August 24.
Vection said the additional funds would buffer a $9m cash pile as it pursues a global expansion strategy.
Over the medium term, the company said it aimed to generate 50 per cent growth in annual recurring revenues by June 2022.
In the 2020 financial year, Vection made a loss of $1.16m on revenues of $3.14m.
Key focus sectors are healthcare, education and automotive, with potential options in defence, the company said.
Vection offers a range of commercial software solutions, such as virtual reality (VR) and augmented reality (AR) programs used to interact with 3D models.
The company said it wanted to accelerate growth in the US and Australia, along with its core market in Europe, where CEO Gianmarco Biagi is based.
“The placement represents a strong platform to pursue Vection Technologies’ global growth strategy, aligned with our six-month objectives,” Biagi said.
The company also plans to expand its capability in cloud-based and Local Area Network (LAN) applications, and integrate third-party software programs to offer more of a full-service product suite.