29 Sep ASX ANNOUNCEMENT: Update on Finance Facility
FY2017 was a transformational year for Pureprofile and this is detailed in the Annual Report released today.
To support our continued growth and expand our local and international businesses, we invested over $5m in developing our software and platforms during FY2017. These differentiate Pureprofile in the market and our investment is being validated by the growth of our partnership with News Corp and the size and number of new customers coming on board like Unilever. Our investment in building market-leading products positions us well to sell a broader, integrated and ultimately more valuable range of products and services in FY2018 and beyond. With platform and software synergies enabled with the Cohort acquisition, we expect our investment in software will reduce in FY2018.
Subsequent to the end of FY2017, in accordance with the Cohort acquisition agreement, Pureprofile will pay the vendors of Cohort consideration in respect of the earn-out (which concluded at the end of FY2017) of $4,590,317 in cash and 8,888,889 Pureprofile shares (escrowed until May 2018).
To assist with funding the cash consideration payable to the Cohort vendors in this half-year and to provide additional working capital to support our expected growth during FY2018, Pureprofile has been exploring a range of funding alternatives.
We are pleased to advise that this week Pureprofile signed a non-binding term sheet for a new facility that will provide sufficient funding to support our continued growth during FY2018 and pay the final earn out consideration due to the Cohort vendors. As previously stated, it is not envisaged that a capital raising will be required.
Pureprofile will continue to update shareholders on its progress with finalising this facility over the coming weeks.