Why the AppsVillage (ASX:APV) share price soared 19% today

The AppsVillage Australia Ltd (ASX: APV) share price was sent soaring today following successful commitments made through its strategic placement. Here are the details.

man jumping along increasing bar graph signifying jump in alumina share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The AppsVillage Australia Ltd (ASX: APV) share price was sent soaring today following a capital raise announcement. During late-afternoon trade, the software-as-a-service (SaaS) solutions provider's shares were up 23.8% before closing the day up 19% at 13 cents per share.

Let's take a closer look and see what AppsVillage announced.

What's driving the AppsVillage share price higher?

The AppsVillage share price is firmly in the green today as investors appear excited about the company's latest prospects.

According to its release, AppsVillage reported a number of updates in regards to raising funds to execute its growth strategy.

The company stated that it has successfully secured binding commitments from existing institutional investors through a share and option placement.

Offered at a price of 11 cents apiece, the company issued 5,454,546 ordinary shares to raise $600,000. The new shares will be allotted on this week on Friday 5 March. In addition, those investors who participated in the placement also have an attached option of 1 share for every 2 shares received. The issue is available at nil price, exercisable at 13.5 cents expiring on 25 February 2024.

Furthermore, the company revealed that it has completed the directors' investments of $200,000 as announced last August following shareholder approval. AppsVillage issued 1,339,286 ordinary shares to non-executive chair Bahram Nour-Omid for $150,000. The remaining $50,000 came from non-executive director Andrew Whitten for the allotment of 446,429 ordinary shares.

Pleasingly, AppsVillage was granted conditional approval to list on the TSX Venture Exchange (TSXV) (Toronto Stock Exchange). As part of the dual listing process, the company plans to raise a minimum of CA$5 million to satisfy the usual standard conditions.

So far, AppsVillage has received signed non-binding indicative term sheet commitments for a total amount of US$2.5 million. This came from an existing institutional shareholder and a new Israeli-based investment fund, whom were issued an indicative price of 16 cents each. The company noted that it is working with regulatory authorities to ensure it satisfies the listing criteria within the required 90-day period.

What did the head of AppsVillage say?

AppsVillage founder and CEO Max Bluvband hailed the strong backing, saying:

We are very pleased with the support we have received from our largest and existing shareholders and Directors of the Company as we continue to execute on our growth strategy. The proposed TSXV listing has generated good interest from potential investors and we look forward to completing that process in the near term.

The AppsVillage share price is down more than 34% since this time last year.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A man looking at his laptop and thinking.
Share Market News

5 things to watch on the ASX 200 on Friday

Will the market end the week on a high? Let's find out.

Read more »

A piggy bank on the cloud in the blue sky symbolising a record high share price.
52-Week Highs

12 ASX 200 shares that smashed historical peak prices today

Twelve ASX 200 shares rose to new multi-year peaks in an otherwise quiet day of trading.

Read more »

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors saw another day of mild gains for the stock market this Thursday.

Read more »

Two boats on the water with crates with the words trade war in the middle.
Share Market News

Trump's tariffs blocked by trade court: Which ASX 200 stocks could benefit the most?

These 3 ASX 200 stocks have heavy tariffs exposure.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Broker Notes

How this undervalued ASX All Ords share could rocket 80% in a year

A leading fund manager expects a big turnaround for this beaten-down ASX All Ords stock.

Read more »

Man looking happy and excited as he looks at his mobile phone.
Share Gainers

Why Champion Iron, Clarity Pharmaceuticals, St Barbara, and Woodside shares are charging higher today

These shares are having a good session today. But why are investors buying them?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why ALS, Black Cat, Boss Energy, and Soul Patts shares are falling today

These shares are falling on Thursday. Let's find out why.

Read more »

A car dealer stands amid a selection of cars parked in a showroom.
Broker Notes

Up 77% in a year, guess how much more upside Macquarie tips for Eagers Automotive shares

Macquarie released its latest analysis on Eagers Automotive fast rising shares this morning.

Read more »