Overview of Activeport Group's Rights Issue

Activeport Group Ltd (ASX:ATV) has announced a 3 for 4 renounceable rights issue at 2 cents per share to raise up to approximately $5.3 million. Eligible shareholders will receive 1 free attaching new option for every 3 new shares subscribed, with an exercise price of 10 cents, expiring on 27 November 2027. The company aims to strengthen its balance sheet and advance new software projects to drive recurring revenue growth and positive free cash flow.

Chairman's Perspective on the Rights Issue

Chairman Peter Christie expressed enthusiasm about the fundraising, highlighting Activeport's profitability and its position as a leading vendor of orchestration software for networks, data centres, cloud gaming, and artificial intelligence. He emphasized the significance of the fundraising in providing a foundation for growing the company's recurring revenue base and achieving consistent, positive free cash flow.

Summary of Activeport Group's Rights Issue

Activeport Group Ltd (ASX:ATV) has initiated a renounceable rights issue to raise up to $5.3 million, offering a discount of 50% to the Company's 30-day VWAP in September 2024. The funds raised will be utilized to hire technical and business development staff, grow recurring revenue from enterprise software licenses, expand its SaaS business globally, and repay existing loans and creditors. The Rights Issue is open to eligible shareholders in Australia, New Zealand, Hong Kong, and Singapore, with the offer price representing an attractive opportunity for shareholders to participate in the company's growth and development.