Digital Cabinet R5m equity raise commences
HAVAÍC is pleased to announce that Digital Cabinet (Pty) Ltd (“Digital Cabinet” or the “Company”) has mandated HAVAÍC to undertake a R5m capital raise, which includes the conversion of the convertible loan, extended in July 2016, into equity. The capital raise is based on the Company’s estimated valuation having doubled in the intervening period.
Several of the convertible loan participants and all the HAVAÍC principals have committed to subscribe for additional equity. HAVAÍC is now engaging with its wider investment community to close the remaining investment opportunity.
Digital Cabinet offers companies cloud-based paperless document and workflow management solutions, and is on the brink of a period of rapid growth as a result of:
increased focus on sales and marketing as opposed to product development on which it has focused to date;
distribution agreements with partners abroad; and
a partnership with Computershare for its digital post offering, which has driven the increase in the Company’s estimated valuation as a result of the increased user base this joint venture will facilitate.
The proceeds of the capital raise will be used by Digital Cabinet to increase its staff capacity, undertake a concerted marketing exercise with the objective of creating product and brand awareness, implementing further product development and improving operational efficiencies.
HAVAÍC will represent investors who acquire shares in the Company, as a result of the loan note conversion and the fresh capital injection, on the Company’s board of directors.