Way2VAT Ltd (ASX:W2V) has taken recent capital raising efforts past the A$4 million mark after increasing a private placement by an additional A$500,000.
This increase was made possible by further commitments being secured from current sophisticated and institutional investors on the same terms as the successful placement finalised on June 23, 2023, at A$0.01 per share.
Strong endorsement
This additional demand provides a strong endorsement of Way2VAT’s FY23 transformation plan focused on its automated VAT/GST claim and return solutions.
Proceeds will primarily be used to expedite W2V's pathway to profitability by increasing VAT sales through European enterprise hubs in the UK and Spain, harnessing growth in Spain through DevoluIVA partners and fully integrating the Way2VAT product suite across multiple geographies.
To accelerate growth initiatives
Way2VAT CEO and founder Amos Simantov said, “I am very grateful for the confidence shown by these new shareholders and thank them for their strong personal and financial endorsement for Way2VAT’s FY23 transformation plan.
"We saw increased demand for our recent placement and the board decided these additional funds would assist the company in our growth initiatives.
"It puts the company in an even better position to harness Way2VAT’s AI-powered technology platform and innovation that puts it at the forefront of the sector.
"Our strengthened balance sheet will help accelerate growth initiatives out of the UK and Spain hubs and integrate the full product suite in all markets. This in turn will further increase transaction volumes, margins and revenues.”
Placement details
This A$500,000 capital raise at $0.01 per share will see the company issue 50 million new fully paid ordinary shares by way of a single tranche institutional placement under ASX Listing Rule 7.1A.
The issue price represents a 20% discount to the last closing price on July 10, 2023, being the last day, the company traded prior to the placement and a 20% discount to the 15-day volume weighted average trading price.
New shares will be listed on ASX and will rank equally with existing fully paid ordinary shares in the company. Settlement of the new shares is expected to occur on Friday, July 14, 2023, with allotment on Monday, July 17, 2023.
BW Equities Pty Ltd acted as lead manager to the placement.
READ: Way2VAT targets A$3.544 million in raise to advance sales and revenue growth
It follows the company’s $3.544 capital raise announced earlier this year which included $2.35 million from a fully underwritten one-for-one non-renounceable entitlement offer and a $1.194 million placement.
Cornerstone investor Thorney Investment Group committed to subscribe for $1 million under the entitlement offer.
Thorney, which had provided a $1 million loan in April to be set off against the subscription of its entitlements and sub-underwriting commitment, is now the company’s largest shareholder.
Several directors of Way2Vat also committed to take up approximately $170,000 of this offer via subscription of their entitlements and sub-underwriting the entitlement offer.