IXUP's Q3 FY24 Progress and Funding Round

IXUP Limited (ASX: $IXU) has reported its progress for the third quarter of the financial year ending 30 June 2024 (Q3 FY24). The company raised approximately $4 million through a partially underwritten non-renounceable entitlement offer and the conversion of all outstanding Convertible Notes into shares. The funds will be utilized for debt reduction, late stage commercialization pipeline conversion, and securing additional organic growth initiatives. The company also achieved a positive net operating cashflow of $53,642 in the March quarter, supported by the settlement of the FY23 R&D refund of $1.2m.

Executive Commentary on Strategic Initiatives and Financial Performance

The funding raised will enable IXUP to target significant commercial contracts for its core secure data collaboration technology and pursue a new partnering strategy for its North American RegTech business. The company is focused on achieving consistent positive cashflow from all three business divisions and is implementing appropriate cashflow management across the entire business. Additionally, IXUP is actively pursuing new responsible gaming and consumer wagering protection technology opportunities in Australia and internationally. The company is also progressing with the final phase of the paid Pilot with a Tier 1 global cloud computing organization, with commercial negotiations expected to commence post successful conclusion. Furthermore, IXUP is working on smaller commercial opportunities for its core data collaboration technology and expects the outcomes to be known in the June quarter.

Summary of Q3 FY24 Progress and Outlook

IXUP's successful funding round of approximately $4 million will support the company's debt reduction, late stage commercialization pipeline conversion, and additional organic growth initiatives. The company is targeting significant commercial contracts for its core secure data collaboration technology and is pursuing a new partnering strategy for its North American RegTech business. With a focus on achieving consistent positive cashflow, IXUP is actively pursuing new responsible gaming and consumer wagering protection technology opportunities in Australia and internationally. The company is also progressing with the final phase of the paid Pilot with a Tier 1 global cloud computing organization and is working on smaller commercial opportunities for its core data collaboration technology. IXUP's operational execution of BetStop - the National Self Exclusion Register remains successful, and the company is nearing the completion of the CEO selection process. While discussions regarding a potential acquisition opportunity in the RegTech sector ceased during the quarter, IXUP remains focused on disciplined cash management and seeks to capitalize on opportunities for growth through its recent strategic acquisitions.