Chapmans claims stake in SaaS provider Rision
Chapmans Limited (ASX:CHP) will invest in Software-as-a-Service (SaaS) company Rision Limited (ASX:RNL) as part of its arranged A$1.5 million capital raising. The capital raise is open to sophisticated investors only and is not a public offering.
Under the agreement, CHP will purchase 80 million shares at $0.00375 totalling A$300,000, with the following subject to Rision shareholder approval:
- A short term loan of A$193,200, which will be converted into 64.4 million shares at $0.003 per share
- Subscription of a further 30.6 million shares at $0.003, totalling A$91,800
- 175 million options exercisable at $0.003
In addition, unspecified parties introduced by CHP to the capital raise have agreed to:
- Subscribe for 153.873 million shares at $0.003 totalling A$461,619
- Subscribe for 30.6 million shares at $0.00375 totalling A$114,750
An additional subscription for 112.877 million shares at $0.003 totalling A$338,631 will also be executed, subject to Rision shareholder approval.
Rision CEO Megan Boston, spoke on the promising development: “We welcome this initial investment from Chapmans and look forward to working with Chapmans to rapidly expand the existing business via its network of Asian Pacific prospective clients.”
Should it exercise all of its shares and options CHP will emerge with a 19.8 per cent stake in Rision, making it the company’s largest shareholder. Rision will hold an extraordinary general meeting (EGM) to approve the measures in March 2018.
However, CHP is an early stage play and as such any investment decision should be made with caution and professional financial advice should be sought.
CHP Chairman Peter Dykes also spoke on the agreement: “We are very pleased to announce our investment in Rision. We believe this investment fits our mandate of identifying technology investments with significant potential.”
Rision is an SaaS company that accelerates in employee management solutions. Its three key platforms are RosterCloud, Core Platform and Bespoke platform.
RosterCloud was acquired by Rision in July 2016, with the highly-marketable platform already generating entry level revenue.
Rision’s Core Platform has received a recent overhaul and is now at suitable polish to begin trial customer testing. Rision is in discussions with a large unnamed US business in the hospitality sector to deliver the Core Platform.
Bespoke Platform is customer built software, with the product currently being rolled out across additional sites this year.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.