Cre8tek Receives $5.1M Binding Commitments

KEY TAKEAWAYS:

• Cre8tec has received positive feedback from customers because of its ongoing projects and future plans to implement several projects.
• Cre8tek has received new binding commitments amounting to $5,122,825.52 through shares placement.
• The company is expected to issue 59,342,383 under 7.1 and 68,728,255 under 7.1A.

Listed company Cre8tek Limited has received up to $5,122,825.52 worth of binding commitments through the placement of 128,070,638 ordinary shares with a price of 4 cents for every share. The number of shares to be issued under the ASX Listing Rules are 59,342,383 under 7.1 and 68,728,255 under 7.1A.

Cre8tek Limited recently acquired Flamingo Customer Experience, Inc., an Artificial Intelligence company. It has investments in technology solutions specifically application software, SaaS, software marketing solutions, communication software, security and encryption as well as online social networking services. The new capital commitments it received will pave the way for new sophisticated, professional and institutional investors.

With Bell Potter Securities Limited as the lead manager, the placement is expected to settle on September 25 this year, the allotment will be on September 26. The issue price represents a discount of 7.2% discount to the volume weighted average of the ASX shares of the company.

The placement has raised money in addition to Cre8tek’s existing $2.6 million cash balance. The fresh funding amounting to $3.15 million will be used for product development, a$2.4 million for account management, $0.75 million for sales and business development and $1.4 million for general working capital and corporate expenses.

The Flamingo technology is implementing paid trials and the funds will be used not only for that but also to support go-live customers. It will also invest in resource capability and operational infrastructure not only in Australia but all over the United States. Expect a rapid expansion of activities to accelerate new opportunities for the company and its clients in the next months.

Cre8tek has also signed new contracts, the first with Chubb Asia Pacific Pte. Limited for a Software and Services Agreement, and with Chubb Insurance Australia Limited for a paid trial. These updates have only increased customer confidence in the company. Most of the company’s customer implementations are ongoing while two of its customers are already in the final stages of its user acceptance testing.

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