Catapult Group International Announces A$25m Equity Raising to Drive Elite and Prosumer Growth

Catapult Group International Limited (ASX:CAT) announced it has launched a fully-underwritten institutional placement of new ordinary shares raising A$25 million at A$1.10 per share, representing a 6.8% discount to the last traded price (‘Placement’).

Highlights

  • Catapult launches A$25 million offer of new shares at A$1.10 per share
  • Net proceeds will capitalise the business appropriately, enable the execution of Catapult’ssignificant growth opportunities in the Elite and Prosumer markets and deliver long-term growth to shareholders
  • Based on Catapult’s current strategy and supported by its three-year plan, management does not anticipate requiring additional equity funding before becoming cash flow positive
  • Placement is fully underwritten by Goldman Sachs Australia Pty Limited

Following work completed on addressable markets, customer economics, customer product needs and longterm budget requirements, Catapult has decided to raise A$25 million to drive the growth of its core business units. Net proceeds from the Placement will be used as follows:

  • Elite Sales: To fund the hiring of additional sales and marketing FTEs in the Americas, Europe and Asia and to accelerate Catapult’s penetration in those markets;
  • Prosumer: To provide marketing, distribution and working capital to accelerate growth in unit sales following Catapult’s soft launch to the Prosumer soccer market in Q4 FY18;
  • Tactical Analytics: To fund the hire of additional software development FTEs to continue to develop and commercialise the tactical product for Elite teams; and
  • Investment in Elite Technology Stack: To fund integration and additional development costs related to other products in the Catapult technology stack.

Joe Powell, Catapult’s Chief Executive Officer, said “We are excited to announce this transaction which is a major step towards delivering on our long-term strategic plans for the business. The launch of this funding round is the culmination of a significant amount of work undertaken to better understand our addressable market opportunity, customer economics, customer product needs and the capital requirements needed to unlock the significant growth opportunities available to us. We have a high degree of clarity and conviction on what is required to deliver growth over the next few years and this raising provides the funding capacity to execute on our plans.”

 Mark Hall, Catapult’s Chief Financial Officer, said “What has impressed me about Catapult is the clarity of our strategy and the assets and capability we have to continue to pursue what is a large market opportunity. We have done a significant amount of work identifying the investments we need to make to meet our long term strategic goals and how we will execute to achieve them. We are confident this capital is what we need to deliver on our current plans to create a high-growth, positive cash flow generating business over the next few years.”


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