Highlights
- Adveritas secures $8.5M for growth push
- New product features boost client ROI
- Record annual contract value achieved
Adveritas (ASX:AV1), a specialist in fraud-prevention software, has successfully raised $8.5 million through an oversubscribed placement. This funding round includes participation from both existing shareholders and new institutional investors. The capital injection aims to accelerate the company’s global growth strategy, with a sharp focus on expanding into the US market and further penetrating verticals like e-commerce.
Strategic Fundraising Details
The placement involves the issue of around 85 million new shares at $0.10 per share. This pricing reflects a 4.8% discount to Adveritas’ last traded price, but significantly, it stands at a 67% premium compared to the capital raised in May. The raise reinforces the company’s liquidity position, enabling strategic investments in product development and market outreach.
Record Contract Milestone
A key highlight in Adveritas’ recent progress is securing a single-customer annual contract valued at $1 million—a record figure and more than 10 times higher than the company’s top contract two years prior. This milestone underpins Adveritas’ strengthening value proposition and growing client trust, especially across global sectors such as sports betting.
Additionally, renewed agreements with several high-profile clients in the sports betting space have resulted in increased contract terms and rates. These renewals contributed to a 27% uplift in annual contract values during the March quarter, with expected cash receipts totalling $5 million over the term.
Product Enhancements Driving ROI
The company's flagship platform, TrafficGuard, continues to evolve. Recent updates include features like shadow campaigns and Smart Ranges, specifically crafted to tackle fraud-related issues in digital advertising—particularly for gaming and betting industries. Early adoption of Smart Ranges has yielded significant ROI improvements, with clients reporting up to a 25% increase in advertising efficiency.
These innovations are enhancing client stickiness and positioning Adveritas as a critical tool in digital campaign performance optimisation.
Position Among ASX200 Stocks
Although not yet part of the S&P/ASX 200, Adveritas' momentum, especially with substantial client wins and innovative product offerings, puts it in a favourable spotlight among emerging tech peers. Continued operational success and expansion efforts could bolster its visibility and appeal among broader ASX investors tracking high-growth tech companies.