Family Zone raises $5.5m

18/04/2019 - 11:15

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Family Zone Cyber has raised $5.5 million in a share placement to support further growth and support its expansion in the United States.

Family Zone raises $5.5m
Tim Levy says the capital raising was an important step towards ensuring Family Zone is in a solid position to pursue the immense opportunities in front of the company. Photo: Attila Csaszar

Family Zone Cyber Safety has raised $5.5 million in a share placement to support further growth and support its expansion in the United States.

The company is focused on cyber security for families and schools, meeting a rising demand to keep children safe online and manage digital lifestyles.

In a statement, the company said the proceeds from the capital raising would be used to accelerate growth, build on progress being made in US education and underpin the company’s commitment to achieving breaking even in cash flow in early 2020.

Blue Ocean Equities acted as lead manager to the share placement, made up of 35,483,872 shares at 15.5 cents each.

The placement price represents a 22.5 per cent discount on the last traded price and a 23.6 per cent discount to the 15-day volume-weighted average price.

The company’s shares are trading at 19 cents at 10:30am AWST.

Family Zone managing director Tim Levy said the capital raising was an important step towards ensuring Family Zone was in a solid position to pursue the immense opportunities in front of the company.

“With this raising we strengthen the balance sheet and have funds to pursue growth in the exciting US market,” Mr Levy said.

“Through this raising we also welcome Blue Ocean Equities and a number of new institutional investors.

“Through these measures we hope to unlock value and liquidity for our shareholders.”

Mr Levy said key milestones the company had reached included being in more than 270 schools in the US, a 45 per cent uptake by parents in Australian schools and a doubling of recurring income.

“We are projecting top-line revenues at the high end of $8 million to $9 million in FY19 and the company moving swiftly to cash flow break even in the first half of CY2020,” he said.

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