Spacetalk Ltd (ASX: SPA), a company that develops and sells hardware and software to provide safety at every stage of life, has announced it successfully raised $4.05 million to support its growth initiatives. The funding comprises $1.5 million from a conditional placement to institutional and professional investors, $2.0 million through the issue of September Converting Notes, and a $0.55 million commitment from the Board and Management Team via Management Converting Notes.
The capital raised is earmarked for geographical expansion, investment in app development, purchase of inventory, and covering the costs of the offer. According to Spacetalk Managing Director Simon Crowther, the funding will enable the company to push into new regions and launch a new software experience, with the goal of reaching $20-25 million in Annual Recurring Revenue (ARR) by 2026.
The placement involves the issue of 13,636,364 new shares at $0.11 per share, representing a discount to the previous closing price. The placement is conditional on shareholder approval at an Extraordinary General Meeting (EGM) anticipated for late October. In addition to the capital raise, Spacetalk has appointed John Bird as an Independent Non-Executive Director and Chair of the Audit & Risk Committee, effective immediately. Bird brings over three decades of experience in public companies, including roles in the biotech, technology, and gaming sectors.
Amendment of the terms of the July Converting Notes will also take place. These notes were previously issued to Thorney, with the subject to shareholder approval to issue notes to Pure Asset Management to extinguish secured debt. The conversion price will reduce to $0.11. Spacetalk’s Chair, Georg Chmiel, welcomed Bird to the board, citing his skills and experience as valuable assets for the company’s continued growth, particularly in overseas markets.
