Activeport’s Funding Boost Hinges on Shareholder Approval for Key Tranche
Activeport Group Ltd has successfully raised $6.68 million through a two-tranche placement, positioning the company to accelerate its software development and target cash flow positivity in FY26.
- Raised $6.68 million via two-tranche placement at $0.033 per share
- Placement priced at a premium to 15-day VWAP
- Funds to support business development, sales, marketing, and product innovation
- Directors and senior management committed $680K subject to shareholder approval
- Company now fully funded for foreseeable future aiming for FY26 cash flow positivity
Capital Raise Overview
Activeport Group Ltd (ASX – ATV), a developer of orchestration software for telecommunications and data centre operators, has completed a $6.68 million placement to institutional and sophisticated investors. The placement was conducted in two tranches at $0.033 per share, representing a modest premium over the recent 15-day volume weighted average price of $0.0314. This capital injection is designed to strengthen Activeport’s balance sheet and provide working capital to accelerate its growth initiatives.
Investor Confidence and Management Participation
The placement attracted high-quality domestic and international funds, alongside supportive high-net-worth investors, signaling strong market confidence in Activeport’s strategy. Notably, directors and senior management have committed $680,000 to the raise, subject to shareholder approval, underscoring their alignment with shareholder interests and confidence in the company’s prospects.
Strategic Use of Funds
Activeport plans to deploy the proceeds to accelerate business development, sales and marketing efforts, and product development. The company’s orchestration software aims to cloud-enable traditional network infrastructure, improving customer experience through automation and flexible consumption models. With significant tailwinds in the orchestration software market, Activeport is positioning itself to capitalize on growing demand.
Outlook and Market Position
Chairman and CEO Peter Christie emphasized that the successful placement, completed at a premium price, leaves Activeport fully funded for the foreseeable future. The company is now focused on delivering software and driving revenue growth, with the ambitious goal of achieving cash flow positivity in the 2026 financial year. This milestone would mark a significant step in Activeport’s maturation from a development-stage company to a sustainable, revenue-generating business.
Next Steps and Shareholder Considerations
The second tranche of shares, including those issued to directors, will require shareholder approval, as will the issue of lead manager options to Alpine Capital. These approvals will be critical to finalizing the capital structure and ensuring the company’s growth plans proceed unhindered. Investors will be watching closely for the outcomes of these approvals and subsequent financial updates.
Bottom Line?
With fresh capital secured, Activeport is set to intensify its growth push, but shareholder approvals remain a key hurdle ahead.
Questions in the middle?
- Will shareholder approval for tranche two shares and lead manager options be secured without issue?
- How quickly can Activeport translate this capital into measurable revenue growth and cash flow positivity?
- What impact will the new institutional investors have on Activeport’s strategic direction and governance?