Friday, 24 April 2015 12:43

Yatango raises $1 million, gets new operational latitude

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Yatango’s reverse takeover of Latitude has already started bearing fruit, with a convertible note issue ‘materially’ oversubscribed, raising $1 million.

Last month, Yatango announced a reverse takeover where Latitude Consolidated, a listed ASX company, would be acquiring 100% of the issued capital of Yatango.

Now, a month later, there has been more movement at the station. It seems the word had passed around that investing in Yatango’s success could be a solid play.

After all, listing an already successful MVNO and self-described ‘disruptive online consumer products and services delivery platform targeting the 18 to 45 demographic’ sounds just like the kind of modern-day technology business many want to be part of.

On top of that, if it also features a ‘centralised rewards and recommendation system enhances buying power and creates a more engaged, more loyal and more profitable customer across all business units’ - then all the better!

Now, I’m not an investor myself and naturally don’t give any financial advice, nor profess to be any kind of financial advisor, so any financial investment decisions you do or don’t make come from the skin of your own wallet.

However, Yatango’s new capital injection certainly would seem to give the company some nice new latitude to make a bigger marketing and operational splash, with the funds earmarked to be ‘largely used to drive marketing initiatives and provide general working capital’.

All of this follows due diligence between the two companies that was completed on 14 April 2015.

The convertible note issue was managed by lead brokers for the transaction, Azure Capital and Fosters Stockbroking, who report that ‘significant demand was received for the issue and upon closing it was materially oversubscribed.’

We are also told that ‘pricing for the convertible note was at 20% below the price for new stock to be issued as part of the planned upcoming $6 million recompliance capital raising.’

In addition, the announcement of proposed post merger Board is due in the coming weeks.

So, who do we know was a participant in the issue?

Yatango and Latitude’s media release points to ‘a number of sophisticated high net worth investors’, although they remain unnamed.

We are told, however, that ‘this adds to the existing blue chip shareholder register for Yatango including Larry Kestelman, Basil Sellers, Ryan O‘Hare and Annette Presley.’

Timothy Moore, a director of Latitude Consolidated said: "The strong interest received from investors in the issue is very encouraging. It provides the necessary funding for Yatango to proceed with its growth plans and raises confidence as to the likely investor interest in the upcoming capital raising.”

Andy Taylor, Yatango’s Founder and CEO said: “The coming months will be a busy an exciting time for Yatango. We have a number of new marketing initiatives which will be implemented to drive customer growth across our mobile and shopping business units and some important corporate news including the announcement of a proposed post acquisition Board in the coming weeks.”

Yatango notes its two existing business units, Yatango Mobile and Yatango Shopping, will be added to over time by further business units, with the newest addition set to be Yatango Money to arrive during the 2015 calendar year.

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Alex Zaharov-Reutt

One of Australia’s best-known technology journalists and consumer tech experts, Alex has appeared in his capacity as technology expert on all of Australia’s free-to-air and pay TV networks on all the major news and current affairs programs, on commercial and public radio, and technology, lifestyle and reality TV shows. Visit Alex at Twitter here.

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