Dubber Corporation Announces AU$25 Million Fully Underwritten Equity Raising to Drive Growth

Key Points:

1. Dubber has launched a fully underwritten AU$25 million equity raising, including institutional placements and a 1-for-1 entitlement offer.
2. Proceeds will be used for working capital, market awareness, tax liability reduction, and recovery of misappropriated funds, with the goal of achieving cash flow breakeven by FY25.
3. Newly appointed CEO Matthew Bellizia has pre-committed AU$1.25 million to the capital raising, reinforcing confidence in Dubber's growth strategy.

Dubber Corporation Limited (ASX:DUB), a global leader in conversation intelligence and voice data services, has announced a fully underwritten AU$25 million equity raising. This significant move aims to support the company's ongoing growth, particularly as it continues to build awareness of its innovative conversation intelligence solutions. The capital raising is structured through multiple offerings targeting institutional, sophisticated, and existing shareholders, with the funds set to be directed towards expanding sales, improving operational cash flow, and recovering misappropriated funds.

Equity Raising Structure

The equity raising is divided into three parts:

1. Institutional Placement: A fully underwritten placement to institutional and sophisticated investors will raise AU$3.6 million.
2. Conditional Placement: A fully underwritten conditional placement, subject to shareholder approval, will raise an additional AU$7.5 million.
3. Entitlement Offer: The largest portion of the capital raising is a fully underwritten, 1-for-1 pro rata, accelerated non-renounceable entitlement offer, aiming to raise AU$13.9 million. This offer is available to all eligible shareholders, allowing them to purchase additional shares in proportion to their existing holdings.

In total, these components will secure AU$25 million for Dubber, with the placement fully underwritten, ensuring the target amount will be raised regardless of market conditions.

Purpose of the Capital Raising

Dubber plans to use the proceeds from the equity raising in several key areas to accelerate its growth trajectory:

• Working Capital: The company is focused on increasing market awareness of its conversation intelligence platform and driving sales growth. Dubber's solutions, which leverage AI to analyze conversations across various industries, have immense potential in sectors like telecommunications, financial services, and customer service.
• Tax Liability Reduction: The funds will also help reduce Dubber's existing tax liabilities, improving its financial position.
• Recovery Efforts: A portion of the proceeds will be used to support recovery efforts related to the previously disclosed issue of misappropriated funds, ensuring that Dubber's financial health remains robust.
• Costs of the Offers: The company will cover the administrative and legal costs associated with the equity raising through the raised funds.

With these goals in mind, Dubber aims to enhance its operational efficiency and improve its financial standing, with the ultimate goal of achieving a monthly run rate breakeven in cash flow by the end of the fiscal year 2025.

Improved Financial Metrics

Dubber has reported improvements in its financial performance compared to the previous corresponding period (pcp). Revenue, costs, and margins have all shown positive trends, underscoring the company's focus on operational discipline and sustainable growth. This financial momentum will be further bolstered by the infusion of AU$25 million from the equity raising, positioning Dubber to scale its offerings and capture more market share in the rapidly growing conversation intelligence sector.

Leadership Commitment

In a show of confidence in Dubber's future, newly appointed Chief Executive Officer Matthew Bellizia has pre-committed AU$1.25 million to the equity raising. Bellizia, who joined the company in September 2024, brings a wealth of experience in technology and enterprise solutions. His financial commitment underscores his belief in Dubber's strategy and growth potential, signaling confidence to both shareholders and the market.

Outlook and Strategic Focus

Dubber is well-positioned to capitalize on the rising demand for conversation intelligence solutions. As organizations increasingly adopt digital transformation strategies, Dubber’s AI-powered platform offers valuable insights by capturing and analyzing voice data, which can be leveraged for various applications, including compliance, customer experience, and workforce optimization.

The equity raising is a critical step in ensuring Dubber can continue its upward trajectory. The company’s primary focus will be on expanding its market footprint, particularly in the new area of conversation intelligence, which is expected to be a significant driver of future revenue. The funds will also enable Dubber to invest in sales and marketing, fostering partnerships, and scaling its infrastructure to meet growing demand.

With plans to achieve operational cash flow breakeven by the end of FY25, Dubber is on track to solidify its position as a global leader in voice data services.