FirstWave Cloud Technology Limited (ASX: FCT) has entered into an agreement to issue convertible notes to the value of A$2.5million to Danish asset management and specialist small cap financier Formue Nord A/S to support FirstWave’s continued expansion into Latin and North America.
On completion of the transaction, FirstWave will have approximately A$5 million of working capital to support its growth strategy as the company continues to head towards a cashflow positive operating position.
“Formue Nord has expressed their desire to be a long-term partner for FirstWave during and beyond the term of the convertible note and we look forward to working with them as we execute our growth strategy,” FirstWave CEO Danny Maher said.
“The investment provides us with capital to pursue our plans to be a significant player in the global network management and cybersecurity space.
“Our ability to repay the principle early without penalty and all other payments being interest only gives us ultimate flexibility to navigate the facility as we choose - maximising our use of the capital and providing us the opportunity to manage through any unexpected difficulties without default clauses coming in to play.
“Formue Nord has exceptional experience in supporting companies like FirstWave and I am thrilled to be working with them as our newest investment partner.”
Formue Nord Founding Partner and Chief Investment Officer Rasmus Viggers said this is the firm’s first investment in an Australian company.
“Our intention is to be a long-term investor and partner for FirstWave, and we look forward to working with Danny and his team.”
Formue Nord is an independent specialised asset manager and the leading capital partner for small and midsized listed companies in the Nordics. It manages two investment funds with focus on innovative companies; mainly within technology, biotech and healthcare, and have invested over AUD 2bn in these segments since inception in 2015.
Over the last seven years, Formue Nord has completed more than 800 investments and finance agreements with partners.