ASX-listed energy tech provider Buddy Platform has completed a $23 million capital raising round.
The startup, founded by former Australian Microsoft executive David McLauchlan, went into a trading halt on Friday then announced Monday that 115,000,000 ordinary shares would be issued at 20 cents per share. The company’s stock closed at 24 cents at the close of trade.
The company revealed 90% of the new money came from institutional investors.
“We’ve always been clear that it would take only a truly exceptional opportunity for us to return to the capital markets for additional funding,” said McLauchlan.
“We are incredibly happy with the overwhelming support that Buddy has received from what is an extraordinary roster of some of the region’s top institutional investors with this placement.”
Buddy first hit the headlines in March for the launch of its flagship product Buddy Ohm, which is a system of connected sensors and devices installed in commercial buildings to monitor, analyse, manage and reduce energy use.
“The reason we’ve gone from 6 cents to 24 is because we’ve distributed the product through the first major channels,” McLauchlan told Business Insider last month.
“In the Caribbean, it’s through the largest telco in the territory – 70% plus market share.”
Telecommunications find the device attractive to sell because they’re connected to the mobile network and encourages ongoing use of data plans.
“It’s absolutely perfect for them. There isn’t a carrier in the world that isn’t interested in putting more stuff on their network that they can monetise,” said McLauchlan.
The company revealed in mid-October that US carrier T-Mobile had agreed to provide worldwide mobile coverage for its devices, covering more than 140 countries at “pre-negotiated and fixed” global data pricing.
Business Insider understands sales partnerships with Australian and Canadian telcoa are also in the pipeline, while the startup’s announcement on the ASX on Monday hinted at an even larger distribution deal.
“The company is currently in the process of formalising a potential large distribution arrangement which, if concluded and implemented, will span over 100 new markets,” the statement read.