Way2VAT Ltd (ASX:W2V) is targeting A$3.544 million in a capital raising to increase focus on sales execution and revenue growth in its key product suites of VAT reclaim for travel expenses and accounts payable.
The company is undertaking a fully underwritten one-for-one non-renounceable entitlement offer to raise about A$2.35 million and has also received firm commitments for a A$1.194 million placement.
Under the entitlement offer, Way2VAT has fielded $1 million in commitments from cornerstone investor Thorney Investment Group.
What's more, certain directors have also committed to taking up approximately A$170,000 of the entitlement offer via subscription of the entitlement and sub-underwriting the entitlement offer.
“Expedite the pathway to profitability”.
Way2VAT CEO and Founder Amos Simantov said: “The Way2VAT business has, over the last six months, shown the type of growth that the company is capable of and the benefits from its superior technology to scale higher volumes of VAT reclaims for our customer base.
“We continue to add new clients at a healthy rate and I am very grateful for the support from both new and existing shareholders to provide capital that will allow us to execute the company’s strategy and expedite the pathway to profitability."
Capital raise summary
The entitlement offer will be open from Wednesday, April 26, 2023, to Wednesday, May 10, 2023, to eligible shareholders registered as a holder of shares on the record date and have a registered address in Australia, Israel, New Zealand or Singapore.
Participants in the placement will receive new shares after the record date and, accordingly, will not be eligible to participate in the entitlement offer.
Furthermore, the company and Thorney have entered into a loan agreement, pursuant to which Thorney has agreed to advance a A$1 million loan to the company.