Cloud-based software technology solution provider, Dubber Corporation (ASX: DUB), has received binding commitments for a total of about $5.7 million in a placement of shares at $0.45. The total number of new shares to be issued is 12,643,778.
The capital has been raised over two stages, with the first stage of $3.9 million completed under the company’s existing share issuance capacity. The balance $1.8 million of the capital raised will be the subject of shareholder approval at its annual general meeting on November 20 in Melbourne.
In a statement on the ASX, the company said the capital injection serves to provide it with key stakeholders and enable it to materially bring forward its growth plans.
Dubber managing director, Steve McGovern, said its intensive business development push since listing in March this year has led to a number of opportunities in terms of customer acquisition and product integration, both of which can be contemporaneously fast tracked with the additional funds.
He added that a large component of the capital will be used to bring forward presences in the UK, Europe and America.
“The offer was hugely oversubscribed and we were keen to attract key cornerstone investors and, to that end, we are very pleased to announce Thorney Investment Group and Tony Gandel among those investors.
“We knew that there was a requirement for the Dubber service in our targeted markets of telco service providers and business. Dubber has substantial engagement in these areas today, however, intends to take advantage with a substantially accelerated operational plan particularly in the USA and Europe,” he said.
McGovern also indicated that the placement proceeds, together with recent announcements about new business, underpin the company’s financial position and enables it to immediately roll out customer-ready products over coming months.
The company recently signed a deal with a ‘big four’ bank that will bring in about $1.68 million in revenue in for the first quarter of 2016, with the project having already commenced.
It has also launched into North America with its first US telco, BluIP, which will provide call recording to its 2000 current recording subscribers and offer recording as an on-demand option with a 12 month initial term for another 30,000 users.