Adslot Completes $4 M Share Placement

  • May 09, 2019 AEST
  • Team Kalkine
Adslot Completes $4 M Share Placement

Adslot Ltd (ASX: ADJ) is an information technology company headquartered in Australia. The company is engaged in several online and digital media activities. It helps publishers automate the sale of their advertising inventory through Adslot Publisher Platform. The company got officially listed on the ASX on 17th December 1987.

Adslot announced today the successful completion of $4.0m share placement to new and existing institutional investors.

The placement includes the issue of 160 million new and fully paid ordinary shares at an offer price of $0.025 per share so as to raise $4.0 million.

The offer price of $0.025 depicts –

  • Closing price on 6 May 2019 which was the last day of trading prior to the trading halt announcement for Placement purpose (the trading halt was announced on 7th May 2019).
  • A discount of approximately 8.2 per cent to the Volume Weighted Average Price (VWAP) of $0.027 calculated for five days - up to and including 6 May 2019.

The company intends to use the raised funds to make progress on the development of trading fees via the Adslot Marketplace in the US market.

The placement is anticipated to settle on 15th May 2019. Trading of shares will commence on 16th May 2019.

The company released its Q3 FY19 Trading Update on 30th April 2019. During the March 2019 quarter, the value of media booked via the Adslot Media platform rose by 83 per cent to $2.5 million in comparison to the prior corresponding period (PCP). There was a 448 per cent increase (PCP) in the total number of trades from all advertisers to 181 during the quarter. The company saw a 12.3 per cent rise in gross value of media transactions to $4.87 million on PCP.

Some new advertisers joined the platform along with 50 additional brands that traded for the first time in the March quarter. The company informed that it is in talks with the six largest media agency holding companies in the US for the execution of a Master Services Agreement (MSA).

The activation of the Symphony platform for GroupM got completed in Thailand and the Philippines during the March quarter. The company had a cash balance of $7.43 million as on 31st March 2019.

Adslot published its H1 FY19 results on 27th Feb 2019 and saw strong revenue growth across the businesses. In comparison to H1 FY18 figures, the group revenue rose by 25 per cent to $5.217 million, revenue from continuing operations increased 41 per cent to $5.058 million, trading technology revenue advanced 62 per cent to $4.191 million, licence fee revenue surged 46 per cent to $3.318 million and trading fee revenue climbed 179 per cent to $0.872 million in H1 FY19.

The company’s stock ended higher at AUD 0.027 (on 9th May 2019) with a gain of 8 per cent relative to last trading day’s close, i.e. 6th May 2019. Around 39,922,719 number of Adslot’s shares traded today. The trading commenced today after two days as there was a trading halt due to the pending share placement announcement.


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