The company raised the funds from high-quality investors through a 3-cents-a-share placement led by Bell Potter Securities.
Strongly supported capital raising
The company said the “strong support” was an indication of institutional investors’ strong commitment to the company.
The investors made up the majority of the placement which was also backed by sophisticated investors.
Vault’s raising was priced at a 3.2% to last Wednesday’s closing price, the day before the company halted, and a 10.7% discount to the 15-day volume-weighted average price.
Vault founder and chief executive David Moylan said: “Vault is in an incredibly exciting period of growth and opportunity and although the company was in a sound financial position, the raising provides the assurance that funding is available to further accelerate our speed to market for our products.”
Moylan expected the capital raising would also allow the risk, environment, health and safety (EHS) sector SaaS (software as a service) provider to “capitalise on opportunities presented and be resourced to convert the opportunities we see ahead of us with cash resources of approximately $7 million.”
The Vault Solo displayed on the Samsung Galaxy Watch, a wearable product due for Australian release in October.
Vault reported today it expected the funds raised to be used for efforts to accelerate growth in key areas and increase speed to market.
The company told the market: “Funds raised from the share placement will be used to accelerate the growth of the Vault range of products and enhance the sales, customer success and account management components of the business.”
The areas to be backed by the capital raising include its Vault Solo workforce management tool that will be able to be used for workers in the field, including workers operating in lone-worker ecosystems.
Vault Solo worker-tracking functionality in action on a smartphone.
Market disrupter Vault Solo is a business product line developed as a collaboration with Samsung Electronics Co Ltd (KRX:005930) and can operate on its newly launched Galaxy Watch which will be pushed out the Australian, New Zealand and Asia-Pacific markets.
Vault said today Solo sales opportunities and trials had reached a level that could not be capitalised on by the resources it had.
The funds are expected to facilitate its update as the watch is progressively rolled out across the globe, with Australia’s release date previously tipped for October 4.
Employers track workers using the Solo Web Portal.
Vault reported the funds raised would allow it to capitalise on the market opportunities being created by Samsung and its telecommunications provider partners for Solo and the global wearables market.
The company predicted the funds would help it rapidly enhance Solo’s capabilities and performance, resulting in greater market penetration on a swifter basis.
Vault expects to further build the Solo brand and up efforts to promote it and the company’s products.
The company also plans to “aggressively manage, drive and convert Vault Enterprise sales and opportunities across Australasia and China”.
Companies deploy the Vault Solo system, roll it out to employees, adopt it within their existing company structure and then enjoy the costs savings of accurate tracking of worker activities.
A staged approach
Vault expects to settle the first tranche, of 134,853,674 shares, on Friday.
The company will ask its shareholders to approve the second tranche, of 31,812,993 shares at a general meeting of members at a meeting to be held in early October 2018.
The Australian company released its annual results last week, reporting a 76% increase in its business performance measure, contracted annualised recurring revenue, to $1.75 million in the 2017-18 financial year.
Cash receipts, another performance measure for the company, broke through a $1 million ceiling in the June quarter for the first time, primarily from sales of Vault 3 (V3) products.
The company ended the financial year with $3 million in cash and receivables on June 30.