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- DW8 (DW8) launches a $9.85 million capital raise to fund the growth and maintenance of its Kaddy Marketplace and Kaddy Fulfilment platforms
- The capital raising comprises a $5 million funding agreement with US-based New Technology Capital and a $4.85 million non-renounceable entitlement offer
- The agreement with New Technology replaces a convertible note agreement with Triton Growth, which DW8 has terminated due to ongoing delays from Triton
- New Technology will invest in three stages, and under the entitlement offer, eligible shareholders can subscribe for one new share for every six held at 1.1 cents
- Shares in DW8 are down 26.7 per cent and are trading at 1.1 cents at 12:22 pm AEST
DW8 (DW8) has launched a $9.85 million capital raise to fund the growth and maintenance of its Kaddy Marketplace and Kaddy Fulfilment platforms.
The capital raising comprises a $5 million funding agreement with US-based investor New Technology Capital and a $4.85 million non-renounceable entitlement offer.
Under the $5 million funding agreement, New Technology will invest in three stages, with each investment to be made via the prepayment of shares.
The first investment will raise $1.5 million for $1.69 million worth of subscription shares and is expected to be received in the next week.
The second investment will raise $1.5 million for $1.63 million worth of shares within seven months of the initial funding.
The third investment totals $2 million and will be made within the next 12 months.
Initially, the purchase price of the shares will be equal to three cents — a 100 per cent premium to DW8’s closing price on August 12 of 1.5 cents.
Subject to a floor price of one cent, however, the purchase price will reset after the initial month to the average DW8’s five-day volume-weighted average price over a 20-day period.
For the entitlement offer, eligible shareholders will be able to subscribe for one new share for every six held priced at 1.1 cents.
Participants will also receive one free attaching option for every two shares issued, exercisable at 1.5 cents with expiry on March 31, 2023.
Meanwhile, DW8 has terminated a convertible note agreement with Triton Growth Management due to ongoing delays from Triton.
On July 29, the companies entered an agreement under which Triton would supply up to $10 million in funding to DW8.
Of the $10 million, $5 million was to be drawn down at completion, with an additional $5 million available if both parties agreed.
Triton faced delays in receiving the funds required to satisfy its obligations under the contract, so DW8 said it had scrapped the deal.
“Whilst our previously announced funding with Triton Growth has not eventuated, we are delighted to have secured an alternative funding pathway with an institutional anchor,” DW8 CEO Dean Taylor said.
“We have an extremely strong product market fit in our integrated marketplace and fulfilment platform, Kaddy. The recent external factors impacting the beverage industry and levels of consumption — COVID, ongoing bad weather events and macroeconomic uncertainty — have proven difficult for us and have set us back, but only temporarily.
“Equally, notwithstanding the team’s focus to achieve growth, the task of onboarding larger suppliers and distributors has proven challenging, but we remain steadfast in our goal of widespread adoption of our unique platform.”
Shares in DW8 were down 26.7 per cent and were trading at 1.1 cents at 12:22 pm AEST.
