AD1 (ASX:AD1) eyes $2m capital raise via share placement – The Market Herald


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  • AD1 (AD1) has received firm commitments to raise $2 million in additional capital
  • The software business will issue 63.5 million shares to investors at 3.2 cents each
  • AD1’s directors will also seek shareholder approval to participate in the share placement
  • The proceeds raised will help the company settle the second tranche of its Art of Mentoring acquisition and fund growth initiatives
  • Shares have closed down 13.2 per cent at 3.3 cents each

Software business developer and investor AD1 Holdings (AD1) has seen its share price tumble on Monday despite gearing up for a $2 million share placement.

The company announced it had received firm commitments for the raise and would issue around 63.5 million new fully paid ordinary shares at 3.2 cents each to institutional and sophisticated investors.

The issue price represents a 16 per cent discount to AD1’s volume-weighted average share price for the 10 trading days to October 15.

The company’s directors also look set to participate in the placement, subject to receiving shareholder approval at the upcoming annual general meeting.

AD1 said eligible participants would receive one free attaching option, exercisable at 5.2 cents within 12 months, for every four new shares allocated.

Commenting on the raise, AD1 Chief Executive Officer and Management Director Brendan Kavenagh thanked investors for their support.

“The funds will complete the final cash component of the acquisition terms for the Art of Mentoring division, which constitutes impressive growth and also provides resources to continue to further develop our product offering and expansion plans throughout the broader AD1 group,” he said.

The Art of Mentoring platform is a software-as-a-service solution that helps deliver mentoring programs across corporate and government clients.

“We look forward in continuing our development and refinement of our sales offerings along with allocating resources to continue to grow the AD1 client base and continue to grow new revenue-generating opportunities.”

Despite the news, AD1 shares closed 13.2 per cent in the red at 3.3 cents each on October 25.


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