Raisebook

AI Assisted Video Surveillance Software with Recurring Revenue
ICetana Limited
ICetana Limited
ASX:ICE
  • AI assisted video surveillance software that uses machine learning techniques to provide automated real time anomalous event detection.
  • iCetana’s Directors believe that the Company is the only proven, commercially available, non-rule-based, AI motion anomaly detection solution for diverse large scale surveillance networks.
  • iCetana has partnered with industry leaders including Chubb as licensed resellers and system integrators for greater coverage in the Company’s go-to-market strategy and lower costs of customer acquisition.
  • The company has traction in securing enterprise grade customers - Over 20 Active Customers at over 35 locations, supporting in excess of 10,000 video surveillance cameras globally.
  • The product has application to multiple customer segments and use cases.
  • iCetana is transitioning swiftly to a SaaS operation to build recurring revenue streams.
  • The management team is strongly encouraged to grow the business in the short to medium term across key geographies (Europe, North America, APAC and the Middle East).
  • The Company operates in an attractive Total Addressable Market that is forecast to grow significantly over at least the next four years.
  • Indicative market cap on successful ASX listing of $27.5M.
Raise Amount
$5,000,000
Offer Price
$0.2000
Closes
Nov 29, 2019

iCetana Ltd is an Australian technology company focused on the development and commercialisation of the ‘iCetana Solution’.

The iCetana Solution is an AI assisted video surveillance software using machine learning techniques to provide automated real time anomalous event detection.

The Company was formed in 2009 to commercialise technology developed by researchers in the School of Electrical Engineering, Computing and Mathematical Sciences at Curtin University. These intellectual property rights have been assigned to the Company.

The research and technology allows for the efficient analysis of very large data sets to identify anomalous activity and events outside normal patterns.

iCetana has successfully commercialised the technology to provide automated real time anomalous event detection (iCetana Solution) for use cases including security, loss prevention, theft and health and safety.

The iCetana Solution integrates with existing video surveillance systems or can be deployed to directly interface with surveillance camera feeds.

The software ‘learns’ activity patterns (not object or facial recognition) for fixed-field-of-view cameras and creates a model of ‘normal’ movement patterns and activity.

After the learning phase, the software then reports anomalous or unusual movement patterns and activity in real-time, through a user interface that highlights those anomalous events and activity.

Security operators, typically based in operations centres, can review the unusual events or activity and determine appropriate responses.

To date, significant traction has been made in securing enterprise grade customers and the Company currently has over 20 active customers across a number of core industry verticals, with installed sites in over 35 locations supporting in excess of 10,000 video surveillance cameras globally.

The product has application to multiple customer segments and use-cases and the Company will be adding use-case support for additional industry verticals as part of the product development roadmap (e.g. prisons, healthcare and financial services).

The Offer

iCetana Limited (ACN 140 449 725) is offering 25,000,000 Shares at a price of $0.20 each to raise $5,000,000 before costs.

The Lead Manager of the Offer is Hartleys.

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.

Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the Disclosure Document.

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

Investors should be aware that there are risks associated with an investment in this Company.

No assurance can be given that the Company will achieve commercial viability through the exploration or development of its Projects.

A complete set of risks associated with an investment in the Company is included in Section 3 of the Disclosure Document.

Capital Structure

Structure
Indicative market capitalisation $27,500,000
Securities on issue immediately prior to Admission
Shares 112,500,000
Options 2,044,037
Convertible Notes 1,000
Performance Rights Nil
Securities on issue upon Admission
Shares 137,500,000
Options 47,047,866
Performance Rights 3,000,000

Please refer to the Disclosure Document for further details.

Indicative Timetable

Event Date
Lodgement of this Prospectus with ASIC 15 November 2019
Opening Date for the Offers 25 November 2019
Closing Date for the Offers 6 December 2019
Allotment Date 17 December 2019
Expected date for quotation on ASX 18 December 2019

Investment Advantages

Attractive Total Addressable Market and market growth

The analytics-based video surveillance market, within which the Company operates, is a large global addressable market that is forecast to grow significantly over at least the next four years.

Recurring revenue

iCetana’s business is transitioning swiftly to a Software as a Service (SaaS) operation, allowing the Company to build recurring revenue streams.

This is complemented by a non-SaaS direct-licensing model which includes recurring maintenance fees where customers or markets have a strong preference for such.

Although iCetana is revenue generating, investors should be aware that it is currently loss making (and refer to Section 5 and Annexure A for information on the Company’s financial position).

Movement over time towards more recurrent revenue:

The below diagram represents the sources of the Company’s revenue for the financial years 2016 to 2019, as between recurring pricing (SaaS and trailing annual fees) and enterprise pricing:

Direct and indirect Go-To-Market models

Sales of the iCetana Solution is either undertaken directly by the Company, or through resellers.

iCetana has partnered with industry leaders including Chubb as licensed resellers and system integrators for greater coverage in the Company’s go-to-market and lower costs of customer acquisition.

Current resellers used by the Company:

Moving forward, the Company intends to extend the range of partners in its portfolio and anticipate sales to continue to transition towards this partner channel to complement the Company’s direct sales efforts.

Sustainable Market Differentiation

The Directors believe that iCetana is the only proven commercially available non-rule-based AI motion anomaly detection solution for diverse large scale surveillance networks.

The Company is led by an experienced management team and Board with deep software industry experience, product management skills and B2B go-to-market capability.

The management team is strongly encouraged to grow the business in the short to medium term across key geographies (Europe, North America, APAC and the Middle East).

A variety of uses of the iCetana System by its Active Customers:

This deal closed on November 29, 2019