Codeifai (ASX:CDE) has hit shareholders with a good-news-bad-news sandwich on Thursday, outlining a deal with Canva and a $0.6M placement on the same day.
Codeifai – market cap $4.62M – has seen its QRConnect products integrated by Canva, in the sense that users can now directly ‘send across’ QR codes to the product.
Canva’s ultimate flagship product is a photoshop competitor which has been around for years. It’s an Australian success story and the company’s been looking at a US listing for a while now – in late 2023, it put one off into 2025.
Until very recently, they were probably kicking themselves for that. The stock has also attracted very, very high valuations across the Sydney end of the Australian finance world; it’s unclear if the litany of other photoshop competitor products online for free come into the calculus of those valuations.
“[This deal] not only greatly broadens the reach and elevates the prominence of a likely high growth product, but it enhances the credibility of and market access for the company’s entire product range,” CDE CEO John Houston said.
“This is likely to prove an important step in driving the company’s revenues and future financial performance.
“We are also appreciative of investors’ commitments to subscribe into the placement.”
That placement could be a sore spot for shareholders. The company has 2.31 billion shares on issue. It’s about to offer 66.6M more.
CDE last traded at 0.2cps.