Adveritas completes $3m raise at premium to support rapid growth
Since the start of this year, Adveritas’ annualised revenue has grown 87% to more than $3.1 million.
Ad fraud prevention software developer Adveritas (ASX: AV1) has raised $3 million to support its corporate growth following the success of recent sales and go-to-market initiatives.
The funds were raised through a placement of 30 million shares at $0.10 each, representing a 34% premium to the company’s 15-day volume weighted average share price.
It was supported by professional and sophisticated investors including major shareholder and non-executive director Mark McConnell who subscribed to 5 million new shares.
Several existing top 10 shareholders also took part in the capital raising, as did new shareholders who have been attracted to the company’s technology, total addressable market and rapid growth.
Heavy investment
Adveritas has committed a heavy investment to its sales and marketing capabilities, resulting in increased global market awareness of flagship product TrafficGuard and its solutions to clients across the Google pay-per-click, mobile app download, affiliate and social quadrants.
The company said its annualised revenue had increased approximately 87% to over $3.1 million since the start of the year, underpinned by a growing number of new client wins.
“More companies are experiencing an increasing return on investment from digital marketing protected by TrafficGuard, and our existing clients are now utilising additional services in line with our ‘land and expand’ strategy (where existing contracts are upsold to another product),” it said.
Growth initiatives
Proceeds from the capital raising will be used for a range of growth initiatives including commercialising Freemium subscribers to paying customers and growing channel partnerships.
Adveritas said it would also hire new staff to manage the integration of 60 potential client companies prior to trial activation and to support new TrafficGuard customers.
This will include the appointment of a chief product officer to strengthen the TrafficGuard experience and drive feature upsells.
Level of support
Adveritas co-founder and chief executive officer Mat Ratty said he was pleased with the level of support received for the raising.
“We are proud to see continued support from our major shareholders as we deliver on our growth strategy and ramp up our annualised revenue, which has already increased by 87% this year and given us a clear path to profitability in the future,” he said.
“Our company is in a strong position to grow market share across key regions through a combination of new clients and cross-selling to existing clients we are excited by the potential we see for our software to improve their digital advertising and marketing performance by eliminating ad fraud.”