Dropsuite Ltd (ASX:DSE) has received binding commitments to raise A$20 million via a placement of shares at 21 cents per share.
The placement was strongly supported by new and existing institutional and sophisticated investors.
Dropsuite will use the proceeds from the placement to accelerate growth opportunities and enhance its leading position in the backup and recovery industry.
“Delighted with the support”
Dropsuite managing director Charif El Ansari said: “We are delighted with the support for the Placement and welcome a number of highly credentialed Australian and offshore institutional investors to the register.
“On behalf of the board, I would also like to thank our existing shareholders for their ongoing support.
“These funds will enable Dropsuite to further strengthen and deliver on its mission of safeguarding business information by actively pursuing high-conviction complementary acquisition opportunities.
“Our focus is on identifying opportunities that strongly align with our strategy and allow us to more rapidly expand our suite of products and our global partner footprint and will ensure we remain well-positioned to benefit from the strong tailwinds and structural growth drivers within the backup and recovery sector.”
Use of funds
The company plans to spend proceeds from the placement for:
- Accelerating strategic growth objectives;
- Advancing M&A opportunities that leverage existing internal growth and take advantage of strong market tailwinds around data protection; and
- Strengthening the company’s working capital and balance sheet position.