Kyckr Limited (ASX:KYK) (Kyckr or the Company), a regulatory technology (RegTech) company is pleased to announce that it has received commitments to raise A$8 million (before costs) via a new share placement to institutional and sophisticated investors (Placement).
New shares will be issued at $0.08 per share, and cornerstone investor in Kyckr, Mr Richard White, has indicated he will support the placement.
Kyckr will also conduct a Share Purchase Plan (SPP) for an additional A$2m, to allow eligible existing shareholders an opportunity to participate in the raising at the same price as the institutional offer.
The new funds will be used to build on Kyckr’s recent international sales growth as digitised customer verification products are proving to be a critical solution for financial services providers in light of tightening regulations globally relating to Anti-Money Laundering and Countering Terrorist Finance. The COVID-19 pandemic has resulted in accelerated adoption of online financial services, which has heightened the need for robust digital customer verification solutions. Kyckr recently launched its latest ‘Company Watch’ product, an automated online monitoring service for enterprises to retain the most accurate customer information, receiving encouraging early traction.
The proceeds will also be used to expand the Company’s enterprise sales team to build on enterprise sales growth and extend the network of global strategic partners, as well as undertaking further product development of the Kyckr solution. Kyckr has recently announced contract wins for the extension of services to tier-one banks Commerzbank and Citigroup, in addition to the Company reporting its highest ever monthly revenue during the month of April of $A260,000, up 39% on the prior year.
“The need for strengthened Know Your Customer practices for online business verification in the financial services sector is now more important than ever in the current COVID-19 environment. Automated customer and business verification will continue to rapidly grow as we have experienced with our contract growth and record revenue in the last few months”, Kyckr’s CEO Ian Henderson commented.
“Our strategy is focused on building our enterprise channel and partnership model, and the additional funds will be used to ensure Kyckr has the financial flexibility to pursue growth as the need for increased digitisation for KYC data increases, and will place us in a stronger financial position to take advantage of emerging opportunities ahead. We are grateful for the strong support from existing shareholders, and we are pleased to welcome new investors to the company.”
The Placement was managed by Bell Potter Securities Limited.