Brief: Sovereign Cloud Announces Strategic Acquisitions And Equity Raising

Aucyber

18/03/2024 08:27

March 18 (Reuters) - Sovereign Cloud Holdings Ltd
 SOV.AX :
    * ANNOUNCES STRATEGIC ACQUISITIONS AND EQUITY RAISING
    * ENTERED INTO BINDING AGREEMENTS TO ACQUIRE THREE
STRATEGICALLY
ALIGNED BUSINESSES
    * ENTERED BINDING AGREEMENTS TO BUY 100% INTEREST IN PCG
CYBER PTY
LTD
    * COMBINED MERGECO FORECAST TO DELIVER FY24F PRO FORMA
REVENUE
A$28.9M
    * ACQUISITION OF PCG CYBER FOR A$15 MILLION
    * ACQUISITION OF 100% INTEREST IN VENN IT SOLUTIONS PTY LTD
FOR UP
TO A$6.0 MILLION
    * COMBINED MERGECO FORECAST TO DELIVER FY25F REVENUE OF
A$36.6M
    * MERGECO REPRESENTS COMBINED ENTITY INCLUDING AUCLOUD,
ARADO,
VENN IT AND PCG CYBER
    * COMBINED MERGECO TO DELIVER FY24F PRO FORMA UNDERLYING
EBITDA
LOSS OF A$2.0M
    * COMBINED MERGECO OPERATING CASH FLOW PROFILE FORECAST TO
TURN
POSITIVE WITHIN 1H FY25
    * EQUITY RAISING OF A MINIMUM A$25M AND UP TO A$30M TO FUND
ACQUISITIONS, AMONG OTHERS
    * ENTITLEMENT OFFER AT OFFER PRICE OF A$0.03 PER NEW SHARE

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