With the $2m in funds raised recently, Covata Ltd (AX:CVT) is planning to strengthen its sales and technical resources in Europe, invest in product development and provide general working capital. Management expects the imminent launch of data classification functionality and the Eclipse cloud-based offering should help drive conversion of the sales pipeline.
$2m raised to fund sales and product development
The company raised net proceeds of $1.42m from the share placement in June and raised a further $0.46m from the entitlement offer in July. It sees opportunities to win business in Europe, helped by GDPR and the recent strategic alliance with dataglobal in Germany, and is planning to strengthen its sales team in the region. In addition, Covata is also looking to develop virtual data room functionality based on its Safeshare platform; these initiatives will also be supported by receipt of the R&D Tax Incentive from AusIndustry in Q219. The net fundraising proceeds are also expected to be used for general working capital purposes.
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