Adveritas announces major share issue

Adtech innovator Adveritas has announced plans to issue 75 million ordinary fully paid securities to raise $4.5 million.

The issue is scheduled to take place on May 7 with a placement price of six cents per share – a three per cent premium on the 30-day volume-weighted price average of 5.8 cents per share, and a discount of five per cent on the company’s April 26 closing price of 6.3 cents per share.

Adveritas co-founder and chief executive Mathew Ratty said the strengthened cash balance following the placement would allow the company to focus on its key objective of achieving a positive cash flow from operations.

“Our strengthened cash balance, our focus on the USA gaming and sports betting market, and strong growth momentum leading up to and beyond our recent March 2024 quarter record cash receipts, will enable Adveritas to continue its growth trajectory and positive operating cash flows,” he said.

The raise comes after the April appointment of Scott Thomson and Marc Phillips as non-executive directors at the fraud prevention software business, and the departure of Renaud Besnard from the same position.

The company reported a net loss of $10.91 million in FY22-23 with a revenue of $2.94 million.

Half-year revenue for the current financial year, released in February, was $1.7 million, up 20 per cent on the half-year ending 31 December 2022.