AXS Group Limited (Proposed ASX Code: AXS), a global software provider which is having over $100 billion in assets. On 18 September 2018, the company lodged a prospectus with Australian Securities & Investments Commission (ASIC) which was containing the key terms of the Share Purchase Agreement (SPA) for the acquisition of Axcess Consulting Group Pty Ltd. However, on 17 December 2018, AXS lodged a supplementary Prospectus with the Australian Securities & Investments Commission (ASIC) to reflect the material changes to the key terms of the SPA. The Prospectus is also issued for the purpose of qualifying the Company for admission to the Official List on the ASX platform.
As per the Supplementary prospectus, the company is seeking to raise $3 million with an oversubscription amount of $0.5 million through the issue of up to 14 million New Shares under the Offer. As per the offer, the minimum subscription amount is $3 million which is representing 12 million Shares at the Offer Price of $0.25 per Share. Importantly, the Offer will not proceed, and all Applications and associated Application Monies will be returned to Applicants (without interest) unless the Minimum Subscription amount of $3 million is raised under the Offer.
The revised offer was opened on 17 December 2018, and it will close on 20 February 2019. The new shares will be issued on 26 February 2019 and it is expected that the shares will commence trading on a normal settlement basis on ASX around 28 February 2019. Out of the minimum raised funds via IPO, 24.6% will be used to pay the costs of the offer, 9.6% of the IPO funds will be used for the expansion of the Group’s executive, sales and marketing teams, 14.3% will be used for the settlement accrued costs and remaining 51.5% will be used to fulfill the working capital needs for the Group’s operations. On Completion of the Offer, Axcess Partnership will transfer certain assets, liabilities and its business operations to Axcess Consulting. Access Consulting will be simultaneously acquired by AXS.
The purpose of the Offer is to complete the acquisition of Axcess Consulting and engage sales personnel in the United Kingdom, Canada, and the United States. Through this offer, the company will raise funds to allow the Company to expand its geographic client base for future revenue opportunities. This offer will also provide working capital to the company upon Listing on the ASX, and it will provide a liquid market for its Shares. By listing on ASX, the company will obtain access to capital markets, which it expects to give financial flexibility and capacity to pursue its growth and acquisition strategy.
The Company’s growth strategies are based upon the strong organic growth in existing product segments and cross-selling opportunities between product lines and clients that require more than one service. As per the Pro-Forma Balance Sheet on Completion of Offer, the company is having total minimum assets of $3.72 million and maximum total assets of $4.184 million.
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