- Vection Technologies (VR1) falls in early trade despite surpassing its first-half contract value goal for the 2022 financial year
- The company says its total contract value (TCV) has reached $11 million — up 120 per compared to where TCV sat at the end of the September quarter this year
- Vection had previously set an objective to reach $10 million in TCV by the end of December, meaning it surpassed this goal a month early
- The company says the defence, military, and law enforcement sector still remains its largest market, accounting for 34 per cent of TCV
- Vection shares are down 10.5 per cent to 19.3 cents each
Virtual and artificial reality specialist Vection Technologies (VR1) has fallen in early trade despite surpassing its first-half contract value goal for the 2022 financial year.
The company today told investors its total contract value (TCV) has reached $11 million — up 120 per compared to where TCV sat at the end of the September quarter this year.
Vection said it had set an objective to reach $10 million in TCV by the end of December. The company beat this goal a month early.
Managing Director Gianmarco Biagi said this achievement reflects the validity of Vection’s growth strategy and the position the company holds in the “metaverse” space.
The comments follow a fresh round of funding from the company under which Vection tapped institutional investors for $12 million through a share placement.
“Following the latest growth funding round, Vection is strategically positioned as a company boasting a high-growth technology suite, a strong M&A focussed war-chest and leading technology focussed institutional investors that validate the company’s market positioning as it accelerates its aggressive global acquisition strategy targeting the XR and metaverse enterprise technology sector,” Mr Biagi said.
“This latest funding round enables management to focus on its organic and inorganic growth, leveraging a stronger balance sheet with ~$20 million cash on hand further reinforced by a base of convertible securities and a robust market valuation supported by key institutional shareholders.”
Vection’s share price has had a stellar run over the past several weeks, likely kicked into action by the news in late October that Facebook was changing its name to Meta.
The name change was accompanied by a shift in focus to the ‘metaverse’, which Facebook plans to support with growing advancements in virtual reality (VR) and augmented reality (AR) tech.
Vection’s tech falls neatly into this sector, with a strong focus on VR and AR solutions as well as 3D modelling and computer-aided design (CAD) capabilities.
Vection shares soared from 10 cents on October 27 to 28 cents on November 28 before retreating to around 20 cents each following the announcement of the institutional placement.
The company said today the defence, military, and law enforcement sector still remains its largest market, accounting for 34 per cent of TCV. The media and communications sector accounts for 20 per cent, with the architecture, engineering and construction (AEC) and real estate sector accounting for 17 per cent.
Today, Vection shares were down 10.5 per cent to 19.3 cents each at 12:58 pm AEDT. The company has a $196 million market cap.