Total
0
Shares
Adveritas (ASX:AV1) - CEO, Mathew Ratty
CEO, Mathew Ratty
Source: Adveritas
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Business software developer Adveritas (AV1) is looking to raise a total of $6.5 million via a three-tranche placement and a share purchase plan (SPP)
  • Only the first tranch is unconditional but if all three tranches of the placement are approved by shareholders, Adveritas will issue 60 million shares for 7.5 cents each
  • If the SPP is fully subscribed, Adveritas will issue approximately 26.6 million shares at the same issue price as the placement
  • According to the company, the placement and SPP will provide it with a funding runway well into 2021
  • It will also enable Adveritas to increase activities aimed at securing additional software-as-a-service customers for Trafficguard, its ad fraud prevention software
  • Company shares dipped after news of the announcement yesterday but today Adveritas’ share price is down 1.06 per cent to 9.3 cents per share

Adveritas (AV1) is looking to raise a total of $6.5 million via a three-tranche placement and a share purchase plan (SPP).

The business software developer is seeking to raise the funds to ramp up customer acquisition initiatives such as advertising, media, public relations and for the addition of more sales and marketing staff.

Specifically, Adveritas will seek to secure additional customers for TrafficGuard, its ad fraud prevention software-as-a-service product, via its freemium offering as CEO Mathew Ratty explained.

“Digital marketing fraud is a massive global problem, estimated to cost global advertisers US$42 billion in 2019 and forecast to cost US$100 billion by 2023. The ad fraud problem is growing each and every year, so we know there is a large global need for our service by any company that advertises online.”

“The timing is right for our company as businesses globally accelerate their transition to online commerce and we have a well-validated and highly scalable SaaS solution in TrafficGuard which can ensure that our clients can optimise their return on ad spend and maximise their profitability‚ÄĚ.

The placement

Adveritas has received firm commitments from sophisticated and professional investors to raise $4.5 million via a share placement, including a $2 million commitment from Regal Funds Management. If the issue of all shares is approved, a total of 60 million shares will be issued for 7.5 cents each to raise $4.5 million.

Only the first tranche of 20 million shares, to raise $1.5 million, is unconditional. The second tranche of approximately 13.3 million shares to raise $1 million is dependent on shareholder approval at a general meeting to be held on June 24.

The third tranche is conditional on approval at a general meeting to be convened in early August and, if approved, will see roughly 26.6 million shares issued to non-executive director Mark McConnell for $2 million.

The share purchase plan

If the SPP is fully subscribed, Adveritas will issue approximately 26.6 million shares at the placement price, 7.5 cents per share, to raise another $2 million.

If the placement and SPP are fully approved and subscribed respectively, Adveritas claims the capital raising will see it well into 2021.

At the end of the March quarter, the company had a cash balance of $4.13 million, providing it with an estimated three quarters of funding.

Earlier in March, the company completed what it described as a pre-emptive $1.85 million capital raising, prompted by the deteriorating market conditions and uncertainty associated with the COVID-19 pandemic.

Company shares dipped after news of the announcement yesterday. Today Adveritas’ share price is down 1.06 per cent to 9.3 cents per share at 2:40 pm AEST.

AV1 by the numbers
More From The Market Herald
Damstra (ASX:DTC) - Chairman, Johannes Risseeuw

" Damstra (ASX:DTC) completes $18m TIKS Solutions buy

Damstra (DTC) has completed the acquisition of software-as-a-service (SaaS) business TIKS Solutions.
Adveritas (ASX:AV1) - Cofounder and CEO, Matthew Ratty

" Adveritas (ASX:AV1) sees TrafficGuard integrate with Google Cloud Marketplace

Adveritas (AV1) has seen TrafficGuard officially accepted and integrated into the Google Cloud Marketplace.
DXN (ASX:DXN) - CEO, Matthew Madden

" DXN (ASX:DXN) signs third contract with SUB.CO

DXN (DXN) has singed a third contract with SUB.CO for additional works as part of the Oman Australian Cable System.
Structural Monitoring Systems (ASX:SMN) - Chairman, William Rouse

" Structural Monitoring Systems (ASX:SMN) shareholders seek vote to sack directors

Two directors of Structural Monitoring Systems (SMN) are at risk of being removed from the company’s board after shareholders this week called for