- Dragontail Systems (DTS) has signed a term sheet to raise $20 million via the issue of convertible preference shares
- The term sheet was signed with Alceon Liquid Strategies, Goudy Park Capital and cornerstone Eldridge Industries
- The funds will be used to accelerate Dragontail’s entry in the US and other markets
- Specifically it would be used for greater marketing and sales support, as well as further research and development
- Finally, the funds would also allow Dragontail to repay a $4.3 million loan from Alceon
- The term sheet is subject to final conditions including due diligence and shareholder approval
- Dragontail gained 33.3 per cent today, with shares priced at 18 cents apiece at market close
Dragontail Systems (DTS) has signed a term sheet to raise $20 million via the issue of convertible preference shares.
The term sheet was signed with Alceon Liquid Strategies, Goudy Park Capital and cornerstoned by Eldridge Industries
US-based investor Eldridge will invest $10.5 million. Goudy, an investment advisory firm based in Chicago, will invest $5.5 million in Dragontail while Australian-based Alceon will put on $4 million.
Dragontail Managing Director Ido Levanon said these particular investors would facilitate the company’s entry into the US market.
“It gives the Company the strong financial resources it needs to achieve its significant growth ambitions. Undoubtedly, the USA market holds great potential for Dragontail, and we are confident that the strategic partners in this fundraising will help us achieve this goal.”
The funding is still subject to a number of conditions, including completion of due diligence and negotiation of definitive legal agreements.
“On the current timetable, legal documents for the Preference Shares are expected to be executed in February 2020, with a shareholder vote to be held in March and the Company receiving the proceeds shortly thereafter,” said Levanon.
Specifically, the funds would be used for greater marketing and sales support, as well as further research and development. In addition, it would allow Dragontail to repay a $4.3 million loan from Alceon.
Dragontail gained 33.3 per cent today, with shares priced at 18 cents apiece at market close.