intelliHR Holdings Limited (ASX: IHR) is an Australian HR technology business developing and currently marketing a next-generation cloud-based people management and data analytics platform, that is is scalable to a global market and is industry agnostic.
On April 17th, 2019, the company announced a capital raising of up to $ 3.76 million, comprising a $ 1-million placement and a non-renounceable $ 2.76 million rights issue at an issue price of $ 0.12 per share, which reflects a 17.2% discount to the last close of $ 0.145 on the ASX. In addition, one attaching option will be issued to investors for every two shares issued under the placement and rights issue.
The capital raising includes a placement of 8,333,333 fully paid ordinary shares to clients of Moore Stephens (VIC) Pty Ltd and Adelaide Equity Partners Limited and a non-renounceable offer of 1 new Share for every 5 existing shares held as of April 29th, 2019. As per the schedule, the shares are expected to be issued on April 23rd, 2019 and would begin trading on April 26th, 2019.
According to intelliHR, the funds raised would be utilised for the ongoing R&D and product enhancements to integrate additional modules for a complete people solution for customers. Besides, there would be continued investments in analytics, natural language processing and reporting functionality to maintain and widen product advantage over competition.
Moreover, intelliHR also plans to invest into domestic and international sales and marketing to expand growth pipeline as it targets a run rate of 4 new customers per sales person per month. The funds will also be expended to supplement the general working capital and enable ongoing execution of business strategy to grow the customer base to more than 7,500 contracted users.
Recently, intelliHR announced that its concentrated sales and marketing approach in the New Zealand market with a dedicated expansion team, have successfully resulted in an increased number of customer wins. The company signed its fourth New Zealand based customer welcoming a NZ Energy Utility to its fast-growing high-profile customer base. When recent customer signings are fully implemented, the total New Zealand headcount is expected to exceed over 1,000 paying users. With a strong pipeline of potential customers, the trend is expected to continue through the remainder of CY19 and beyond.
Moreover, in March 2018, the company achieved a significant milestone upon signing its 50th (and also 51st) contracted customer to the intelliHR HR management platform, which depicts a 16% increase on the 44 signed organisations as of December 31st, 2018, and a 143% increase on total customer contracts signed as at March 31st, 2018.
During the six months (half-year) to December 31st, 2018, intelliHR recorded a 52.8% increase in the Contracted Annual Recurring Revenue to $ 620,400 along with a 57.4% rise in contracted paying users to 5,170. Besides, in October 2018, the company received an R&D Tax Incentive refund of $819,836, the proceeds of which were used to develop software functionality.
The IHR stock price last traded on April 10th, 2019 at AUD 0.145 and a trading halt was imposed on the securities of intelliHR on April 15th, 2019, awaiting the release of an announcement (regarding capital raising) by the company. The stock has generated a strong YTD return of 61.11%.
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