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Identitii (ASX:ID8) raises $6m to pursue growth initiatives

Technology
ASX:ID8      MCAP $3.872M
26 October 2021 17:30 (AEST)

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Software firm Identitii (ID8) has raised $6 million in a placement to institutional investors as it looks to accelerate a number of current and future growth initiatives.

The company issued 37.5 million new, fully-paid ordinary shares at a price of 16 cents each, which represents an 11.1 per cent discount to Identitii’s closing price of 18 cents per share on October 21.

The proceeds will be used to progress Identitii’s ‘LAND, EXPAND and CONNECT’ strategy, which aims to grow customer numbers and sell multiple different products with a view to ultimately deploying the company’s US patent.

The funds will also be used to ramp up sales and marketing activities, and to further enhance Identitii’s core platform to provide new features and functionality, which the company said will increase revenue per customer and help it expand into new markets.

Over the past 12 months, CEO John Rayment noted, Identitii has unveiled several new enterprise customers and a Letter of Intent from another.

“We are now looking forward to additional revenue from our growing pipeline of both enterprise and smaller SaaS customers over the coming 12 months,” he said.

“Our recent and prospective customer growth confirms we are on the right track with a product a broad spectrum of reporting entities both here and overseas need.”

Investors, Mr Rayment continued, should expect to see more announcements as the company builds its client list and strengthens its revenue base over the months ahead.

In addition to the institutional placement, all existing shareholders registered as of November 2 will have the opportunity to participate in a rights issue at the same institutional price of 16 cents per share.

Identitii intends to issue just under 18.9 million shares, raising up to another $3 million.

Shares in Identitii were up 5.56 per cent to 19 cents at the close of trading on Wednesday.

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