Etherstack Plc (ESK.AX) Etherstack plc Trading Update
Sydney, Australia, Jan 29, 2021 - (ABN Newswire) - Etherstack Plc (ASX:ESK) successfully completed a capital raising in December 2020 via an institutional placement with new institutional investors and high net worth investors, raising AUD$5 million before costs. The placement was undertaken at an issue price of AUD$0.58 per CDI and the proceeds of the raise will provide balance sheet flexibility to:
- Enable and accelerate the pursuit of evolving market opportunities in Government Infrastructure, Defence and Public safety markets in particular those opportunities involving Etherstack's Mission Critical Push to Talk and PTT over satellite solutions;
- Enable and accelerate intellectual property developments needed for success in these market sectors; and
- Strengthen working capital resources.
In the quarter, the Company announced:
- a technology licensing contract with the Australian Department of Defence to supply Etherstack technology and associated delivery services to the Commonwealth of Australia with an initial value of AUD$4.1m, with the majority of this revenue to be recognised in FY2021.
- its North American subsidiary, Etherstack Inc. successfully delivered and commissioned a digital radio network for the Royal Canadian Mounted Police (RCMP), the federal policing agency of Canada, within the Arctic Circle.
- New technology licensing deal in France with TPL Systemes. This licence was subsequently delivered within the quarter and royalty revenue has been recognised.
In addition, the Company notes:
- Ongoing joint pursuit of carrier opportunities with Samsung under the Global teaming agreement announced in June 2020 are expected to generate additional revenues this FY
- Additional Australian defence sector pursuits are underway
- Recurring support revenues, a key performance indicator, have remained strong year to date and for the quarter.
- The Company's annual financial statement are in the process of being drawn up and audited. At this point Management expect revenue and EBITDA results will be comparable to the prior year. The net profit after tax will be impacted by a non-cash finance charge of $2,383 recognised in the half year financial statements connected to the revaluation of the convertible note liability as a result of the sharp increase in the Company share price on 30 June 2020.
To view the quarterly report and cashflow, please visit:
About Etherstack Plc:
Etherstack (ASX:ESK) is a wireless technology company specialising in developing, manufacturing and licensing mission critical radio technologies for wireless equipment manufacturers and network operators around the globe. With a particular focus in the public safety, defence, utilities, transportation and resource sectors, Etherstack's technology and solutions can be found in radio communications equipment used in the most demanding situations. The company has Research and Development facilities in London, Sydney, New York and Yokohama.
David Carter, Chief Financial Officer
T: +61 2 8399 7500
Media: Walbrook Investor Relations
Mr. Ben Knowles
T: +61 426 277 760
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