Motio Secures $1.73M to Fast-Track Network Growth and Slash Debt
Motio Limited has raised $1.73 million through a placement to accelerate its digital display network expansion and repay debt early, aiming to reach profitability sooner.
- Raised $1.73 million via placement at $0.05 per share with attaching options
- Funds to accelerate rollout of new digital display sites and enhance AI marketing tools
- Early repayment of debt to oOh! Media Limited to reduce interest expenses
- Company expects to bring forward maiden NPAT positive result
- Post-raise capital structure totals 316.6 million shares, debt-free status targeted
Capital Raising and Strategic Growth
Motio Limited (ASX, MXO), a player in the digital out-of-home advertising space, has successfully completed a $1.73 million capital raising through a placement to institutional and sophisticated investors. The placement was priced at $0.05 per share, accompanied by a 1-for-1 attaching option exercisable at $0.10 over two years, signaling investor confidence in Motio’s growth trajectory and strategic direction.
The fresh capital is earmarked primarily to accelerate the expansion of Motio’s digital display network. With over 1,500 state-of-the-art digital screens across more than 1,200 locations, the company is poised to extend its footprint further by rolling out new sites within the next 12 months. This expansion is expected to drive revenue growth into the 2027 financial year, underpinning Motio’s medium-term growth ambitions.
Debt Reduction and Profitability Focus
A significant portion of the funds will also be directed towards the early repayment of outstanding debt to oOh! Media Limited. This move is designed to reduce interest expenses, thereby improving the company’s financial health and accelerating its path to profitability. Motio’s management highlighted that this debt repayment will bring forward the company’s maiden net profit after tax (NPAT) positive milestone, a key inflection point for investors.
CEO Adam Cadwallader emphasized the company’s disciplined focus on profit and free cash flow over the past year, noting steady increases in revenue and cash EBITDA. The capital raise and subsequent network acceleration are seen as critical enablers to sustain this momentum and position Motio for long-term success.
Enhancing Marketing Automation and AI Capabilities
Beyond physical network growth, Motio plans to invest in advancing its marketing automation and artificial intelligence-driven creative capabilities. These enhancements aim to boost the effectiveness of its local sales development, leveraging technology to deliver more targeted and engaging content to audiences in high-dwell environments such as cafés, medical centres, and pubs.
The company’s unique blend of digital out-of-home advertising, contextual placement, and first-party data analytics continues to differentiate its offering in a competitive market. The capital injection will help Motio capitalize on an expanding pipeline of new locations, many linked to innovations like its creator platform that integrates utility with digital displays for property partners.
Updated Capital Structure and Market Position
Following the placement, Motio will have approximately 316.6 million fully paid ordinary shares on issue. The strong support from investors and the involvement of Blue Ocean Equities as sole lead manager underscore the market’s positive reception to Motio’s strategy. With the anticipated debt-free status and enhanced growth prospects, Motio is setting the stage for a more robust financial profile in the coming years.
Bottom Line?
Motio’s capital raise not only fuels expansion but also sharpens its financial footing, setting up a pivotal phase ahead.
Questions in the middle?
- How quickly can Motio convert its expanded network into sustained revenue growth?
- What impact will early debt repayment have on Motio’s cash flow and profitability timelines?
- How will advancements in AI marketing automation translate into competitive advantage?
