On 12 April 2019, Digital advertising and marketing company, Adveritas Limited (ASX: AV1), in regardS to the announcement on 9 April 2019, issued 13,451,491 fully paid ordinary shares.
Out of this, 12,592,986 shares were issued at $0.165 each in the placement to professional and sophisticated investors to raise $2 million. Another 271,856 shares were issued at $0.165 and remaining 586,667 shares to the corporate advisors of the company regarding the corporate advisory in consideration of the investor relation services provided to the company in the recent capital raising.
On 9 April 2019, the company announced that it had raised $2 million through an oversubscribed placement to professional and sophisticated investors. The issue price of the share was $0.165 which represents the 14-day VWAP price and a discount of 8.3% to the last traded price of $0.180 on 5 April 2019.
The company recently announced that it has entered into a material, two years contract with rapidly growing technology unicorn, Rappi, which is a Latin American super app. Under the contract, the company will provide its ad fraud prevention solution, TrafficGuard to Rappi for a period of two years.
Rappi is the largest on-demand food delivery app in Latin America. It operates in countries such as Argentina, Brazil, Chile, Colombia, Perú as well as Uruguay. The investors of Rappi encompasses high profile funds such as Sequoia Capital, DST Global and Andressen Horowitz along with strategic investor Delivery Hero.
After the successful trial period of various anti-fraud tools, Rappi selected TrafficGuard to protect its digital advertising spend from fraud. During the trial period of TrafficGuard, Rappi was able to
- Firstly, save money that would have otherwise been wasted on fraud.
- Secondly, they were able to access new advertising sources.
- Thirdly, their operation got improved as the manual task got reduced that involved reclaiming ad spend after the fraud has occurred.
With the signing of this contract, Adveritas has won the first major client in the delivery app vertical. The minimum value of the contract is US$360,000 which includes additional fees in case the advertising increases beyond the volume specified by the contract plan.
With this contract, Rappi has also joined the growing client base of TrafficGuard which includes agencies, ad networks and mobile measurement platforms.
The TrafficGuard’s pipeline is growing continuously, and the company is also into multiple trials with the potential new clients. The sales team of the company has attended various conferences in San Francisco, Barcelona as well as Singapore which was attended by multiple high-profile prospective clients.
The company is also confident that in the near future to win further material customer contracts with an active pipeline in the gaming, delivery, taxi, casino as well as e-commerce mobile app verticals.
There were major achievements of the company during 2H FY2019. There was successful integration and partnership between TrafficGuard and global campaign management platform, Partnerize.
The company previously also announced the integration of TrafficGuard, with San Francisco based, customer data solution, Segment.
On 10 April 2019, the shares of AVI was on a trading halt pending the announcement regarding the material contract for the company’s fraud mitigation product TrafficGuard and the shares started trading on ASX post the announcement of the material contract on 11 April 2019.
In the six months, the shares of AV1 have generated an outstanding return of 316.67%. The stock is currently trading at A$0.180 (AEST: 12:38 pm, 12 April 2019), up by 2.857%. The stock soared 6.1% up on 11 April, settling the day at A$0.175.