Family Zone Cyber Safety is expected to be in the market with a $25 million equity raising on Tuesday.
The company had stockbroker Shaw and Partners lining up fund managers pre-market.
The deal was expected to include a $20 million placement at 18c a share and $5 million debt conversion into equity.
Funds raised would be used for working capital to get the company to breakeven.
The company provides cybersecurity tools and advice, with a focus on children, educators and families.
The raising comes five days after it posted $36.9 million revenue for the December half (up from $17.9 million) but widened losses to $38.6 million (from $33.1 million previously) due to high operating costs.
It covers 12 million students, 24,000 schools and has good penetration at UK schools (38 per cent) and US districts (18 per cent). It’s got paying subscriber base of 350,000 odd delivers annual recurring revenue of $80 million.
Family Zone shares are down 38 per cent in the past 12 months, and the company fell out of the ASX All Tech Index at S&P’s December rebalance.
It had a $185 million market capitalisation before the raising and would be hoping Tuesday’s cash call pushes it towards profitability.
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