Network-troubleshooting software company Martello Technologies is hoping to raise $5 million on the markets as it looks to capitalize on surging demand for its products during the pandemic.
The Kanata company, which trades on the TSX Venture Exchange, said this week it has reached an agreement with Paradigm Capital on a bought-deal offering that will see Paradigm purchase 26.3 million units at a price of 19 cents each.
The units are a combination of new shares in Martello as well as future purchase warrants that must be exercised within two years of the deal’s closing date, which is expected to be March 18.
OBJ360 (Sponsored)
Think Ottawa: Positioning Canada’s capital as a premier global conference destination
Ottawa stands as a hub of groundbreaking technology, academic brilliance, and innovation across diverse sectors. Thanks to Think Ottawa, a unique partnership between Ottawa Tourism, Rogers Centre Ottawa, and Invest
Looking for a venue that combines breathtaking views, seamless event planning, and a touch of local charm? Hôtel-Casino Lac-Leamy complex delivers all this and more. Nestled on the edge of
Martello said it could raise additional capital if the underwriter exercises its option to buy up to 15 per cent more units within 30 days of the closing date.
The company says it plans to use the proceeds of the offering for “working capital and general corporate purposes.”
In a statement announcing its latest quarterly earnings earlier this month, Martello said it plans to make “necessary investments in product development, customer success and indirect sales channel development” as the work-from-home trend drives increased traffic on wireless networks that rely on the company’s technology to run smoothly.
Martello posted revenues of $4.63 million for the three-month period ending Dec. 31, up from $2.88 million a year earlier. Revenues from its growing Microsoft sales channel rose 60 per cent year-over-year.