HIGHLIGHTS
- Firm commitments for $3.2 million received from a mix of new and existing institutional shareholders including new substantial shareholder The John & Myriam Wylie Foundation advised by Tanarra Capital, with significant support also received from existing shareholder Regal Funds Management. Funding supports IXUP’s growth initiatives and strategic aims for cash breakeven in 2025, driven by a robust sales pipeline and escalating demand for its Regulated Gaming Technology solutions.
- Mr. Ian Penrose, a Director of the Company, will also subscribe for $100,000 (in addition to the$3.2 million), subject to shareholder approval at an upcoming General Meeting (Penrose Placement).
- IXUP Limited (ASX: IXU), a global leader in centralised self-exclusion registers for the problem gambling industry, is pleased to announce the successful completion of a $3.2 million strategic capital raising (Placement). This funding will accelerate IXUP’s organic growth initiatives, enhance its ability to secure key pipeline contracts, and strengthen its position in the global RegTech market.
The Placement is being undertaken at an issue price of $0.01 per new share, with a free attaching unlisted option for each two new shares subscribed for, at an exercise price of $0.02 and an expiry date of 18 months from the issue date (Options). The Placement has received a material investment from The John & Myriam Wylie Foundation, advised by Tanarra Capital and Regal Funds Management, representing a significant vote of confidence in the Company’s ESG-aligned technology offerings. Their participation underscores IXUP’s social impact and commitment to responsible gambling solutions. Commenting on the Placement, Mr Julian Babarczy, Chairman of IXUP, said: “We are delighted to welcome The John & Myriam Wylie Foundation to IXUP’s share register and an increased shareholding from Regal Funds Management. Their support, along with that of our other institutional and long-term shareholders, is a strong endorsement of our mission to combat problem gambling through IXUP’s world-leading innovative technology solutions. This funding will empower us to build on our existing presence in Australia and Canada while advancing towards our goal of cash breakeven in 2025. We are excited to continue driving shareholder value and delivering transformative solutions to protect vulnerable communities worldwide”. Proceeds from the Placement will be applied towards working capital and sales & marketing activities and to underpin delivery of key pipeline opportunities and potential contract wins primarily in IXUP’s Regulated Gaming Technology (RegTech) division, which sees several potential near-term opportunities and is experiencing regular inbound enquiries for its world leading technology solutions. The Placement will also assist the aim of cash breakeven for the Company in 2025, subject to the successful award of new contracts. The Company has also agreed to redeem A$250,000 (all the remaining outstanding) of convertible notes (Convertible Note) through the issue of 25 million shares and attaching Options (on the same terms as the Placement). The redemption of the Convertible Note will be undertaken in two parts, with he shares being issued under the Company’s available capacity, and the attaching Options subject to shareholder approval (Convertible Note Redemption). Each New Share issued under the Placement, Convertible Note Redemption and Penrose Placement, will rank equally with existing shares on issue. IXUP will seek quotation of the new shares on the Australian Securities Exchange (ASX) once issued. Placement details The Placement will result in the issue of 320.0 million new shares at an issue price of $0.01 per new share (New Shares). This represents a 11% premium to the last close of A$0.009 on Thursday 5th December 2024 and a 1.7% discount to the 10-day VWAP of $0.01017 to Thursday 5th December 2024, prior to IXUP announcing the trading halt on Friday 6th December 2024. New Shares will be issued in a single tranche utilising the Company’s existing Listing Rule 7.1 and 7.1A placement capacity. These New Shares are expected to settle on Friday 13th December 2024 and will be issued on Monday 16th December 2024. A further 25.0 million New Shares at an issue price of $0.01 per share will be issued in respect of the Convertible Note Redemption and 10.0 million New Shares at an issue price of $0.01 per share will be issued, subject to shareholder approval, in respect of the Penrose Placement. 177.5 million attaching Options, subject to shareholder approval, will also be issued to the participants in the Placement, Convertible Note Redemption and Penrose Placement in January / February 2025. All New Shares issued under the Placement, Convertible Note Redemption and Penrose Placement will rank pari passu with IXUP’s existing ordinary shares. IXUP has engaged Canaccord Genuity to act as the sole lead manager and bookrunner to the Placement. The Company intends to call a General Meeting (EGM) for January / February 2025 to seek the abovementioned shareholder approvals. Appendix 3Bs for the proposed issue of new securities in respect to the New Shares under the Placement, Convertible Note Redemption and Penrose Placement, and the attaching Options follows this announcement.