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Dropsuite launches capital increase
Posted on Monday, 09 October 2017 09:15
Dropsuite is raising AUD 4.72 million (USD 3.67 million) from institutional, professional and sophisticated investors.
Under the terms, the Australian Securities Exchange-listed group is offering 80.04 million shares, representing 44.5 per cent of its enlarged capital, at AUD 0.06 each.
It has appointed Bell Potter Securities as lead manager and Bourse Communications as public relations advisor to facilitate the transaction, which remains subject to shareholders’ approval.
Dropsuite develops cloud-based software products that allow small and medium companies to backup, recover and protect their data.
Registered in West Perth, Australia and headquartered in Singapore, the firm currently serves business clients in 136 countries.
The company was previously a gold and metal explorer known as Excalibur Mining.
It changed its name last year when it successfully acquired cloud back up services providers Greenbase and Dropmysite via two reverse-takeovers to change its business focus.
Dropsuite posted net revenue of AUD 1.12 million in the six months ended 30th June 2017, up significantly from the AUD 512,661 recorded during the same timeframe in the previous year.
However, net loss for the period totalled AUD 1.25 million, which widened from AUD 715,756 from H1 2016.
Dropsuite is planning to use the proceeds to boost its presence and customer growth as part of its sales, marketing and product development strategy.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 169 deals targeting data processing and hosting services providers announced in Australia since the beginning of this year.
The largest of these is the ongoing privatisation of the New South Wales government’s land and property information management services unit worth AUD 2.60 billion.
Others targeted during the period include the South Australian government’s AUD 1.61 billion sale of its land services division, which took place in August.
© Zephus Ltd