Engage:BDR Share Purchase Plan closes today
With the tech small cap having extended the close date for its Share Purchase Plan (SPP) beyond 29 May, eligible shareholders in engage:BDR (ASX:EN1) still have the opportunity to participate in the current SPP until close of business today.
The placement opportunity allows shareholders to subscribe for up to an additional A$15,000 of new ordinary shares in the company at an issue price of A$0.16, subject to scale back in the company's absolute discretion. The SPP is not underwritten.
Via the SPP offer, EN1 aims to raise approximately A$2 million to go towards conducting due diligence on the proposed acquisition of AdCel Inc (announced in May), the cash component of the proposed acquisition price, and other working capital requirements for the company.
The company’s proprietary platform utilises sophisticated technology to buy and sell advertising, making the process a lot faster, more cost efficient and also highly scalable.
EN1 launched its own video-serving platform in 2015, eliminating third-party dependency and dramatically reducing its operating costs. It then entered an era of increased investment in technology, to subsequently become a major player in digital advertising across both programmatic advertising as well as the trend of digital influencer marketing.
The most recent headline-grabbing news from the company was its major deal with new cryptocurrency ivyKoin. ivyKoin is a blockchain-based cryptocurrency designed to facilitate transparent business payments on a global scale (you can read an in-depth article on ivyKoin here). In essence, ivyKoin is designed for business transactions, in particular larger financial transactions requiring extensive verification.
Prior to this news, in January EN1 also launched its influencer marketing platform ‘IconicReach’ at the Sundance Film Festival — the largest independent film festival in the US. The platform, developed by the Los Angeles-based tech play over the last two years, utilises EN1’s proprietary technology to streamline the previously inefficient process of sourcing, transacting, and executing influencer campaigns.
Yet EN1 does remain a speculative investment and investors should take a cautious approach to any investment decision made with regard to this stock.