Acusensus Limited (ASX:ACE) Announces Equity Raising and New Contracts
Equity Raising Overview
Acusensus Limited (ASX:ACE) plans to raise approximately $12.0 million through an equity raising initiative. This includes an institutional placement aiming for $10.0 million and a share purchase plan (SPP) targeting $2.0 million. The equity raising is priced at $0.90 per new share, which represents no discount to the last traded price. Funds generated will support business development, product innovation, and working capital needs. The placement will issue about 11.1 million new fully paid ordinary shares.
New Zealand Contract Win
Acusensus has been selected as the supplier for the nationwide mobile speed camera enforcement contract in New Zealand, with an estimated value of up to NZ$92 million over five years. The company has signed an establishment statement of work, and a service delivery document is expected to follow in FY25. The contract aims to enhance road safety and operational capabilities throughout New Zealand.
Financial Performance Update
For the year-to-date period ending 31 October 2024, Acusensus reported a revenue increase of 19% to $19.2 million, and gross profit grew by 35% to $9.2 million. The EBITDA (excluding share-based payments) also increased by 35%, reaching $2.8 million. The company maintains a cash balance of $18.7 million without external debt.
Executive Comments
Managing Director Alexander Jannink expressed confidence in the company’s growth trajectory, stating, “The equity raising will strengthen our balance sheet and support further investments in key areas to leverage upcoming opportunities.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.