Raisebook

IPO of Fast Growing Israeli SaaS Company
AppsVillage Australia Limited
AppsVillage Australia Limited
ASX:APV
  • AppsVillage has a presently unique business offering that enables businesses to develop their own mobile apps at a much-reduced time and price compared to those businesses who outsource or develop internally.
  • AppsVillage has generated revenues from the first day it commenced its sales efforts.
  • The company has secured a global presence with active users across 142 countries.
  • Apps for small & medium businesses are created via AppsVillage’s website, automatically and immediately, without any coding knowledge.
  • The company is an active managed partner of Facebook (NASDAQ: FB)
  • The company generated total sales of more than AUD$700,000 in 2018 and more than AUD$300,000 in Q1 2019.
  • Market Cap of ~$13M with EV of ~$8M on ASX listing
Raise Amount
$5,000,000
Offer Price
$0.2000
Closes
Jul 5, 2019

AppsVillage is a fast-growing Israeli software-as-a-service (Saas) company that capitalising on the growing use of mobile apps and the strong demand for digital marketing solutions for small to medium sized businesses.

Research indicates that mobile phone users spend approximately 90% of their mobile usage time using apps.

AppsVillage has developed a revolutionary SaaS product, pitched at small to medium sized businesses, enabling them to build, launch and market their own branded mobile apps in just a few clicks.

The app is created via AppsVillage’s website, automatically and immediately, without any coding knowledge.

AppsVillage’s technology has automated the design, development, maintenance and marketing of mobile apps, allowing any business to build, preview and launch their own mobile apps without having any code writing or digital marketing knowledge.

AppsVillage commenced generating revenues from its business in 2016 and as at the date of this Prospectus has generated total revenue of over AUD$1,000,000.

The Offer

AppsVillage Australia Limited (ACN 626 544 796) is offering 25,000,000 Shares at an issue price of $0.20 per Share to raise $5,000,000.

Oversubscriptions of up to a further 5,000,000 Shares at an issue price of $0.20 per Share to raise up to a further $1,000,000 may be accepted.

RM Corporate Finance Pty Ltd is acting as Lead Manager to this Offer.

The offer of the securities are made in, or accompanied by, a copy of the Disclosure Document which can be obtained by clicking on the "ACCESS DISCLOSURE DOCUMENT" button on this page.

Before making an investment decision, potential investors should read the Disclosure Document entirely, and seek professional financial advice.

An investment in Securities under this Prospectus should be considered highly speculative.

The Company’s business operations are at an early stage, and the commercialisation of AppsVillage’s products has not yet been proven at any scale.

The Company’s success will depend on the Company’s ability to implement its business plan, the ability to commercialise AppsVillage’s products and the ability of the Company to successfully implement its research and development plans.

Additional risk factors associated with this investment are detailed in Section 5 of the Disclosure Document.

Indicative Timetable

Closing Date of Offer (5:00pm Perth time) 5 July 2019
Completion of Acquisition 10 July 2019
Issue of Shares under the Offer 15 July 2019
Closing Date of Cleansing Offer 16 July 2019
Despatch of holding statements 17 July 2019
Expected date for quotation on ASX 23 July 2019

The above dates are indicative only and may change without notice.

The above stated date for Completion of the Acquisition is only a good faith estimate by the Directors and may be extended.

Capital Structure

Securities offered under the Offer
Offer Price per Share $0.20
Shares currently on issue before the Offer 6,875,001
Minimum Shares to be issued under Offer 25,000,000
Maximum Shares to be issued under Offer 30,000,000
Shares to be offered under the Cleansing Offer 1,000
Total number of shares on issue after completion of the Offer(based on the Minimum Subscription and Completion of the Acquisition) 66,660,790
Options to be issued under this Prospectus Nil
Options and Performance Options on issue following completion of the Offer 35,049,314
Warrants on issue following completion of the Offer 2,000,000
Market capitalisation at listing (undiluted assuming Minimum Subscription) $13,332,158

Key Advantages

  • The Company is acquiring a platform that has developed a presently unique business offering that enables businesses to develop their own mobile apps at a much-reduced time and price compared to those businesses who outsource or develop internally.
  • The Directors and management team of AppsVillage have extensive industry experience which will benefit the Company in seeking to grow the AppsVillage business.
  • Through its acquisition of AppsVillage, the Company will be exposed to the growing online and social promotion market.
  • The Company will potentially be exposed to a worldwide market of small to medium business enterprises that wish to develop their own mobile application for their own target market, meaning that the Company has significant opportunity to grow AppsVillage’s existing market.
  • AppsVillage has generated revenues from the first day it commenced its sales efforts.
  • AppsVillage is continuing to develop two strong relationship channels – with Facebook and Amdocs – to seek to strengthen the Company’s revenue and growth projections.

Relationship with Facebook

One of the main target customers of AppsVillage are SMBs which are already digitally active on Facebook or Instagram.

Helping those customers to become more active digitally, especially on mobile devices and Facebook/Instagram, is a mutual interest of AppsVillage and Facebook.

One of the strengths of AppsVillage’s SaaS platform is that it allows Facebook and Instagram users to create their app in minutes by automating all the design and branding of the app using its existing information sources from its Facebook or Instagram page.

During 2018, AppsVillage strengthened its relationship with Facebook and became an “active managed partner” of Facebook.

Being an active managed partner of Facebook means that AppsVillage has a dedicated account manager that facilitates its ongoing relationship with Facebook and optimises AppsVillage’s advertisements on Facebook by allowing private deep integration with the Facebook and Instagram platforms.

Use of Funds

Minimum Subscription ($5,000,000) % of Funds Maximum Subscription ($6,000,000) % of Funds
Existing cash reserves $300,000 5.7 $300,000 4.8
Funds raised from the Offer $5,000,000 94.3 $6,000,000 95.2
TOTAL $5,300,000 100 $6,300,000 100
Research and development $2,588,000 48.8 $2,888,000 45.8
Sales, marketing and general costs $1,120,000 21.1 $1,620,000 25.7
Corporate and administration costs $857,000 16.2 $857,000 13.6
Unallocated working capital $147,870 2.8 $286,794 4.6
Expenses of the Offer $587,130 11.1 $648,206 10.3
TOTAL $5,300,000 100 $6,300,000 100
This deal closed on July 05, 2019