Completes $4.53 Million Financing Facility to Strengthen Balance Sheet and Drive Growth
- $2 million funding facility received from US-headquartered technology investor Partners for Growth (PFG)
- Additional $2.53 million financing towards Convertible Notes to be issued to investors - $1.2 million of the issue taken up by RJL Investments Pty Ltd, an entity associated with IVO Chairman Gary Cohen
- Funds have been used to strengthen balance sheet and provide IVO with the necessary financial flexibility to deliver on near term growth objectives
- The issue of the Convertible Notes and the Options to PFG are subject to shareholder approval - General Meeting expected March 2017
- IVO well placed to strengthen revenue streams from existing operating businesses
IVO is pleased to announce that it has secured a A$2 million funding facility with highly regarded United States-headquartered technology investor Partners for Growth, which specialises in making loans to growing companies in the technology and health care sectors - http://www.pfgrowth.com
Partners for Growth recently established a presence in Australia. It typically invests in fast growing SME's that are doing $5-75 million of turnover.
Established in 2004, PFG was founded by the former owners and managers of Hambrecht & Quist's venture lending business, which was started in 1983. Partners for Growth has a strategic relationship with Silicon Valley Bank (the largest lender to tech companies worldwide) to provide debt solutions that are not available through traditional commercial lending providers.
Under the terms of the agreement, Partners for Growth's funding is for two years at a 10% annual interest rate. IVO will also issue 66.6 million options to the firm exercisable at 3.0 cents expiring in 2021 subject to shareholder approval.
The Company is also pleased to confirm $2.53 million of funding towards the Convertible Notes has been received with $1.2 million of this funding being taken up by RJL Investments Pty Ltd, an entity associated with IVO's Chairman Gary Cohen.
The issue of the Convertible Notes, together with the PFG Options, is subject to shareholder approval which IVO will seek at a planned General Meeting in March.
Invigor's Chairman and CEO Gary Cohen commented: "We are delighted to have attracted Partners for Growth as an investor in Invigor. They have a stringent funding criteria, a long history of delivering excellent returns from their investments, and their commitment is excellent validation of Invigor's business model and future growth prospects.
"Combined with the Convertible Note funding, Invigor now has the necessary financial flexibility and the balance sheet to deliver solid growth from its operating businesses. Insights, Condat and Spotlite all present compelling opportunities for Invigor, and we are intent on capitalising on these and delivering greater value to shareholders. We are now primed for growth."
Partners for Growth Australia Managing Director Jason Georgatos commented: "We are excited to add Invigor to our expanding portfolio of high growth Australian businesses. We believe that Invigor is poised to grow rapidly given its strong portfolio of products and services. As we grow our Australian and Asia Pac business, we look forward to helping the Invigor team continue their rapid expansion."
Invigor expects to update shareholders on a number of new revenue-generating contracts very shortly.
About Invigor Group Ltd
Today its interconnected data sets enable enterprise clients including retailers, brands, shopping centres and government bodies to identify and better understand competitors, consumers, markets and demographics while providing the consumer with the best value-for-money.
Using its current products and a pipeline of additional offerings Invigor will have the ability to provide an end-to-end solution spanning sales, product management, business intelligence, marketing, advertising, content creation and distribution, while monetising each step of the process.
Invigor Group Ltd