Adveritas targeting TrafficGuard upgrade with $9m cap raising
Anti-fraud software solutions developer Adveritas (ASX: AV1) has come out of a trading halt to unveil a significant boost to its bank balance.
The company has raised an initial $6.5 million and attracted strong commitments from sophisticated investors through an upsized two-tranche share placement.
It has also revealed it is aiming to bring in up to additional $2.5 million via a share purchase plan (SPP).
Product enhancement plans
Co-founder and chief executive officer, Mathew Ratty, said the potential $9 million in proceeds from the placement and the SPP will ensure the company has its largest bank balance since listing.
He added that the new capital will target the further development of the company’s product suite, including adding significant enhancements to its TrafficGuard product and development of new product features and capabilities.
“Our strong cash balance will enable Adveritas to continue its growth trajectory, with our last reported annualised revenue (Q3 FY23) being up 83% from Q3 FY21,” Mr Ratty stated.
“Our strengthened balance sheet will be used to drive our goal to break even and profitability through a number of strategic initiatives including compression of the enterprise level sales cycle, through streamlining of the onboarding process; increasing customer margins; and executing on cross-sell and upsell opportunities already identified in our customer pipeline which is at a record high.”
“It is notable that around 95% of our revenue is generated by single-product customers, whilst we have three well-established products in our offering. I am most excited about our cross-sell and upsell opportunity, which has never been greater, with our growth outlook the most exciting it’s ever been in our company’s history.”
Late last year the Nasdaq listed digital ad verification company Integral Ad Science lobbed a takeover bid for Adveritas at 11c per share, valuing the company at over $50 million.
TrafficGuard ad verification
Adveritas’ TrafficGuard is an ad verification platform which helps combat fraud across Google PPC, mobile app user acquisition campaigns, affiliate platforms and social media.
It detects, mitigates and reports on digital advertising fraud.
TrafficGuard is on the exclusive Google Cloud Marketplace globally allowing clients to contract through the marketplace directly.