- Sovereign Cloud (SOV) is looking to raise $35 million for its AUCloud product
- The company is offering about 70 million shares for 50 cents each, an 18 per cent discount to the last closing price
- NEXTDC (NXT) has agreed to purchase $12.4 million worth of shares who will become a new strategic investor, holding 19.99 per cent interest
- Funds will be used to help fund work capital requirements related to the scaling of AUCloud to critical mass and invest in new cloud platforms in Brisbane, Melbourne and Adelaide
- SOV entered a trading halt while it undertakes the capital raise and last traded at 61 cents per share
Sovereign Cloud (SOV) is looking to raise $35 million for its AUCloud product.
The company is offering about 70 million shares for 50 cents each, an 18 per cent discount to the last closing price.
The capital raise will see NEXTDC (NXT) purchase $12.4 million worth of shares who will become a new strategic investor, holding 19.99 per cent interest.
Funds from the raise will be used to help fund work capital requirements related to the scaling of AUCloud to critical mass and invest in new cloud platforms in Brisbane, Melbourne and Adelaide.
AUCloud is Australia’s sovereign cloud infrastructure as a service (IaaS) provider that is exclusively focused on government and critical national industry communities.
SOV CEO and Managing Director Phil Dawson said there is a continued increase in sovereign cloud services to ensure all data remains within Australian legal jurisdictions.
“Our strategic partnership with NEXTDC, a leading provider of premium data centre facilities, will provide access to a powerful national network of 1500 plus enterprise customers and 730 plus channel partners,” Mr Dawson said.
“This equity raising capitalises AUCloud to extend its platform footprint into Brisbane, Melbourne and Adelaide, and expand its customer reach into the large security conscious enterprise market.”
SOV entered into a trading halt this morning as it undertakes the raise.
Under the halt, SOV shares will be paused until Wednesday, November 24, or when more information is released to the market.
On the market, company shares last traded at 61 cents each.