Perth-based internet service provider Pentanet is planning to pump the $20 million it now has in its pocket thanks to a public capital raising effort into accelerating its network rollout and cloud gaming offering.
The publicly listed National Broadband Network (NBN) reseller and fixed wireless provider revealed on 18 June it had raised the funds via a share placement to institutional and sophisticated investors.
The new funds will be primarily used to accelerate the execution of the company’s fixed wireless and cloud gaming growth strategy, Pentanet told shareholders.
Central to its growth strategy is the deployment of the company’s infrastructure for Facebook's Terragraph and Nvidia's GeForce Now technologies to drive performance capability and to build a unique telecommunications and gaming platform in the Australian market.
"It is good to see the strong support from investors, highlighting an increased level of understanding around the relationship between cloud gaming and 5G, now enabling us to move Pentanet into the next stage of growth early,” the provider's managing director Stephen Cornish said.
“It is a fast-developing market and we have taken advantage of market opportunities in both our fixed wireless and our cloud gaming services to strengthen our capabilities.
"Our team will continue to show that we are leaders in these developing services, and the highest tier when it comes to providing subscribers with industry leading internet performance and delivering on what will be Australia's best and most anticipated high-quality cloud gaming service,” he added.
Since listing on the Australian Securities Exchange (ASX) in late January, Pentanet has focused on its growth strategy and claims to have delivered 20 per cent growth in subscriber numbers with low churn, high average revenue per-user (ARPU), and improving gross margins.
Increased market awareness has been driven by targeted marketing activities and a focus on superior network performance and customer service.
Meanwhile, the company has continued to invest in network deployment and the development of Terragraph mmWave wireless mesh technology that is anticipated to significantly increase network accessibility and performance with gigabit speed capability.
In April, Pentanet was one of a handful of major telcos to secure a licence for high band 5G spectrum in the 26 GHz auction conducted by the Australian Communications and Media Authority (ACMA).
“This investment will result in significant advantages for the network and an accelerated deployment of Terragraph technology in Pentanet’s ‘Project Gigalink,’” the company said.