9 Spokes International Limited (ASX: 9SP) offers an online software-as-a-service application for small and medium enterprises (SMEs) across North America, Europe, and the Asia Pacific region. The 9 Spokes tracking tool enables the SMEs (including start-ups, hospitality and retail businesses, professional services) to collate and sort data to monitor business performance and derive actionable insights. The company was established in 2011 and is based out of Auckland, New Zealand.
On March 6th, 9 Spokes International released an update on the bridge funding facility which provides working capital to allow the company to conclude its current strategic capital raising activity.
On January 22nd, 2019, the company entered into an amendment to its existing short-term funding facility. The amendment encompassed many key terms including extension to the period in which the company may make future drawdowns accompanied by an additional fee for the same; syndication of the loan facility, extension of the date by which the company had to fetch legally binding commitments from new strategic investors to February 11th,2019 for new equity capital in excess of an amount sufficient to repay the facility if fully down at March 31st, 2019.
Also, the agreement required 9 Spokes to obtain certain funding commitments by February 28th, 2019, crossing which the lender reserved the right to appoint an expert to pan out a plan intended to achieve the same.
As of January 22nd, 2019, the company had withdrawn around NZD 1.4 million.
Since then, the lenders and the company have been working closely on many operational and strategic moves including the capital raise programme to a close. Thus, no expert was appointed given the reported progress.
Recently, 9 Spokes International signed and launched a co-sell partner arrangement with Microsoft’ for the One Commercial Partner programme, aimed at assisting companies like 9 Spokes to explore and enter new markets and easily scale by leveraging the deep customer-relationships and the existing technical expertise of Microsoft’s enterprise sales teams worldwide. As part of the programme, 9 Spokes would also be listed on the Microsoft AppSource ecosystem.
The company had also released its update for the quarter ended December 31st, 2018, reporting robust growth in its vision to empower small businesses with the right tools and insights to enhance business performance globally. The figures exhibit continued focus on reducing expenditure, with operating cash expenditure down from $ 4.7 million in the September 2018 quarter to $ 3.2 million, indicating a QoQ fall of 32%. The net cash and cash equivalents as of December 31st, 2018 stood at $1.2 million. The operating and financing activities caused net cash burns of $ 911k and $ 523k respectively.
9 Spokes has a market cap of AUD 12.88 million, and the current stock price is trending at AUD 0.027 as on March 7th, 2019 (01:45 PM AEST), up by 3.85%. The stock soared by 13.043% post the announcement as on March 6th, 2019.
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