Family Zone Cyber Safety Ltd (ASX: FZO) is undertaking a $20 million capital raising and $2 million share purchase plan, bothat an issue price of $0.44 per Share,to accelerate its growth.
The company has received binding commitments to raise $20 million through a placement, with record sales and collections in the June and September 2020 quarters providing strong support for and validation of the company’s universal cyber safety platform
Net proceeds from the placement will be principally used to fund the acceleration of the company’s growth strategy in existing markets as well as expansion into new markets.
To support growth funds will be allocated to expanding the company’s engineering teams, back office systems, structures and personnel to ensure a world class product and delivery.
The company is also launching a share purchase plan to raise $2 million.
The company’s cash balance at September 30, 2020 was $8.7 million and with proceeds of the Placement will exceed $28 million.
With this strong cash position and growing recurring revenues the company is well funded and positioned to invest in the acceleration of its growth strategy.
Argonaut Securities Pty Limited and Shaw and Partners Limited acted as joint lead manager to the Placement.
The company is also launching a share purchase plan to raise $2 million.
Family Zone is an ASX listed technology company focused on cyber safety. Meeting a growing demand to keep kids safe online and manage digital lifestyles, Family Zone has developed unique and innovative cloud-based solutions which combine Australian innovation with leading global technology.
