Regulatory technology (RegTech) company, Kyckr Limited (ASX:KYK), is pleased to announce the successful completion of a A$5.2 million (before costs) placement through the issue of approximately 78.35 million new fully paid ordinary shares at 6.6 cents per share to new and existing institutional and sophisticated investors.
Tranche 2 of the Placement resulted in the issuance of 46 million fully paid ordinary shares, raising A$3.1 million and was approved by shareholders at the Extraordinary General Meeting (EGM) held on 13 September 2019. The capital raising was led by prominent technology entrepreneur Mr Richard White who participated in both Tranche 1 and Tranche 2 of the Placement. Kyckr welcomes Richard as a cornerstone investor with a substantial holding of 19.6%.
Richard is a prominent technology entrepreneur, founder and CEO of WiseTech Global Limited, a leading developer and provider of software solutions to the logistics execution industry. He has been responsible for driving WiseTech’s growth from the tiny beginnings to what has become one of the largest Australian software companies, with a market cap of over $11 billion, with over 12,000 logistics organisations globally using the software today.
Richard White said: “I can see in Kyckr, a product, business and opportunity set that can be leveraged and accelerated to major advantage, and I am grateful to be able to help the company accelerate its growth ambitions both in the placement and, time permitting, occasional advice to the team.”
Kyckr’s CEO, Ian Henderson, commented: “We are delighted by the support received from new and existing investors. It is particularly rewarding that someone of the calibre of Richard has become a strategic investor which validates the strong appeal in Kyckr’s technology and business proposition.”
“The capital injection reflects the continuation of an exciting chapter of growth for the Company in the ever increasing global RegTech landscape.”
Kyckr made increased progress in the last few months with the launch of the improved digital platform, Kyckr.com, for Know-Your-Customer authentication which has seen encouraging early growth signs since launch. The Company has also continued to focus on developing strategic partnerships with firms across the financial, data and technology space, as a method of growing exposure to new clients and revenue.
The proceeds from the Placement will be used to accelerate the Company’s global commercialisation activities and will be applied towards additional resources (Business Development and Account Management), continued investment of Kyckr’s products and general working capital purposes.