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  • Family Zone Cyber Safety (FZO) receives binding commitments from institutional investors to raise $23 million through a placement
  • The technology company will issue more than 42.9 million shares at 53.5 cents which marks a 9.3 per cent discount to the last closing price on June 22
  • FZO is using the funds to accelerate growth which involves acquiring fellow tech company, Net Ref, for an estimated US$4.3 million (A$5.6 million)
  • The company says the buy will provide many benefits including granting it access to a premium classroom management tool
  • FZO’s shares are up 5.08 per cent to trade at 62 cents at 1:17 pm AEST

Family Zone Cyber Safety (FZO) has come out of its trading halt after announcing it received binding commitments to raise $23 million.

The cyber safety technology company went into a trading halt on Wednesday June 23 after indicating its plan to raise some fresh capital. However, details on the amount and what the money will be used for were yet to be released.

As it turns out, Family Zone will use some of the money to acquire fellow education technology business, Net Ref, for an estimated US$4.3 million (A$5.6 million). This sum is based on a multiple of Net Ref’s annual recurring revenue as of December 31 2021.

In addition, the placement will support growth opportunities, expanding FZO’s team and general working capital.

Net Ref has developed a comprehensive classroom management and learning analytics tool which has grown to service over 450,000 students.

It is a subsidiary of US-based boutique technology company, Verite, which Family Zone will welcome as a shareholder and partner once the deal goes through.

Family Zone believes the acquisition strongly aligns with its growth strategy as it will grant it access to a ‘premium’ classroom management tool and engineering expertise, as well as expanding its sales capability and immediately increasing its student base by about 10 per cent.

FZO Managing Director Tim Levy said: “We’re delighted so many of Australia’s institutional investors are recognising our rapid progression and seek to support our journey to protect and support children in the digital world.

“This placement enhances our ability to grow and attract new corporate opportunities like the exciting Net Ref business.”

Family Zone will issue 42,990,654 shares at 53.5 cents each which represents a 9.3 per cent discount to the last closing price on June 22 and an 8.1 per cent discount to the 15-day volume-weighted average price.

Company shares were up 5.08 per cent to trade at 62 cents at 1:17 pm AEST.

FZO by the numbers
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