Identitii is pleased to announce it has received binding commitments to raise a total of $6M (before costs) via a placement (Placement) to sophisticated and institutional investors.
The Company is also pleased to announce a rights issue to allow existing shareholders to participate at the same $0.16 per share price offered to sophisticated and institutional investors (Rights Issue). The latter issue will raise up to an additional $3.0M.
The capital raising will help finance current and future growth initiatives, including:
The provision of working capital for Identitii to execute its LAND, EXPAND and CONNECT strategy, more detail on which is provided in the Company’s new Investor Presentation released today
A ramp-up of sales and marketing activities, as the Company continues to drive new customer growth, following the announcement of deals with Citibank and Standard Chartered Australia earlier this financial year
Continued enhancements to Identitii’s core platform to provide new features and functionality that increase revenue per customer and help the Company expand into new markets, and
Efforts to monetise the Company’s US patent.
Commenting on the announcement, John Rayment, CEO, Identitii, says: “In total we received bids exceeding our capacity and are thrilled with the high level of interest shown in the Placement. In addition to ongoing support from existing sophisticated and institutional investors, we also welcome a number of new shareholders to our register. This new capital will be deployed to accelerate customer and revenue growth initiatives, building on recent customer wins with Citibank and Standard Chartered Australia, and aggressively targeting potential customers in the smaller reporting entity space, following the launch of our exciting SaaS platform to materially expand our addressable market.
“In addition to accelerating customer growth, the capital raise will also help fund ongoing development of our unique technology platform. The continued delivery of new features and functionality will help increase revenue per customer, allow the Company to expand into new global markets and help protect the ‘best of breed’ and competitive advantages we currently enjoy. Importantly, we now also have the resources needed to pursue our commitment to monetising the value embodied in our US patent.
“To our existing retail investors, we thank you for your ongoing loyalty as we continue to build scale. We hope you take advantage of the opportunity now available to build your stake in Identitii via the Rights Issue.
“In the past 12 months, the Company has announced several new enterprise customers and a Letter of Intent from another. We are now looking forward to additional revenue from our growing pipeline of both enterprise and smaller SaaS customers over the coming 12 months. Our recent and prospective customer growth confirms we are on the right track with a product a broad spectrum of reporting entities both here and overseas need. Investors should expect to see more announcements as we build our client list and strengthen our revenue base over the months ahead.”
For more information on the Rights Issue or to read the full ASX announcement, click here.