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.
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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.
