Xref Limited (ASX: XF1), the human resources technology company, today announced it has successfully completed a placement of shares to Australian institutional investors (the Placement).
In response to strong demand from institutional investors, Xref has raised $8 million before costs. The Company welcomes significant new investors as shareholders, as well as welcoming the continuing support of other institutional investors.
Funds from the Placement will support Xref’s international expansion, which includes its ongoing focus on strategic integrations and partnerships, and help to drive the key business metrics of client acquisition, client adoption and annual revenue per account (ARPA), as detailed in the investor presentation lodged on ASX on 3 September 2018.
Xref will issue 13.3 million new fully-paid ordinary shares at $0.60 per share, a 2.4% discount to the five-day volume weighted average price and a 3.2% discount to Xref’s last traded share price. The Placement was managed by Ord Minnett Limited.
Settlement of the Placement is expected to occur on 28 September 2018 with new shares allotted on that date or on 1 October 2018. The new shares issued under the Placement will rank pari passu with existing ordinary shares.
On 3 September 2018, Xref announced sales of $1.3 million for July and August 2018, representing new monthly records for the first two months of FY19. Xref reported sales of $7.1 million for FY18, up 72% compared to $4.1 million in the previous year. Recognised revenue, which reflects usage of Xref credits, was $4.8 million for FY18, up 63% from $2.8 million in the previous year.
Xref’s software as a service (SaaS) platform collects 60% more data five times faster than traditional methods and, by automating a vital task, protects companies from fraud, discrimination and privacy breaches. It is used by more than 780 direct clients across seven countries, including 42% of the ASX top 50 companies.
“We are delighted to welcome a new significant shareholder and the successful Placement has increased the institutionalisation of our register. We are focused on opportunities that will accelerate profitability and this additional capital will support and strengthen our growth in the future.”
Executive director / CEO Lee-Martin Seymour
“We are targeting increased channel growth, through joint marketing activities with partners. We are also focused on growth in client adoption, particularly with the introduction of our new product, People Search, which helps companies to filter data already in their account, to identify potential candidates. The ongoing support for our platform is reflective of the fact that it is highly scalable, fully automated, globally compliant and offers significant return on investment.”
Executive director / CTO Tim Griffiths
“The success of the institutional placement demonstrates strong support for Xref and will improve the Company’s financial flexibility as it continues to pursue its global growth strategy. I would like to thank the investors who participated in the capital raising.”
Non-executive Chairman Brad Rosser