The GetSwift Ltd (ASX: GSW) share price has been one of the best performers on the market this morning with a huge gain.
In morning trade the software-as-a-service company's shares are up 14% to 98 cents.
What happened?
This morning GetSwift's shares emerged from their trading halt following a heavily oversubscribed $24 million capital raising at 80 cents per share.
The capital was raised from a combination of new U.S. and Australian investors, as well as strong support from existing institutional investors. These include IFM Investors, Thorney Investment Group, and Regal Funds.
This capital raising means the company has a cash balance of $29 million now.
Management intends to use the proceeds to accelerate existing and future market share demands, as well as expand new large verticals that have emerged as a result of direct demand.
These include new verticals that require specific compliance management such as defence, manufacturing, and healthcare.
Should you invest?
As I have said numerous times before, I think GetSwift has enormous potential. So much so I recently labelled it as being the next big tech share on the ASX.
Demand for GetSwift's logistics software has been growing at an impressive rate this year.
Even without a salesforce the company has announced major deals with Commonwealth Bank of Australia (ASX: CBA), Pizza Hut, The Fruit Box, and Hungry Harvest.
If the company can now successfully expand into other verticals then the sky really is the limit.
So even though its shares have tripled in value this year, I don't believe for a second that it is too late to invest in this fledgling company.
Though as it is a small-cap share with a limited track record, it could be considered a high-risk investment. Because of this investors may want to consider restricting an investment to just a small part of their portfolio.
