Although the Family Zone Cyber Safety Ltd (ASX: FZO) share price has fallen slightly lower today, the cyber safety company's shares have easily been one of the standout performers on the ASX this year.
Since the turn of the year Family Zone's shares have gained an incredible 160%.
Why have its shares gone gangbusters?
One of the main catalysts for this gain was an agreement the company signed in June with Indonesian mobile phone carrier Telkomsel.
After a successful trial period, the two companies signed a full commercial value-added services agreement which will see Family Zone launch its innovative parental control suite to the telco's 165 million subscribers.
Generally, in developed nations Family Zone charges parents between $5 and $10 per month to moderate their family's online experience.
Whilst this is potentially going to be much lower in a developing nation like Indonesia, considering the size of its population, it could still provide lucrative and sticky revenue streams for the company.
Furthermore, as Telkomsel is part-owned by telco giant SingTel, I believe that if the Family Zone service is proven to add value to Telkomsel's offering, there's a good chance that SingTel may wish to add it to its own network.
Successful capital raising.
It was thanks partly to this strong growth potential and the company's early success in the education sector that it was able to raise $5.2 million via an oversubscribed placement at 40 cents per share this week.
Such was the demand, the placement price was just one cent lower than the last close price.
As I said yesterday, I believe this was a testament to the quality of the company's products and its strong growth potential.
Management intends to use the proceeds to support investment in service delivery and acceleration of business development.
Should you invest?
Whilst there is still a long road ahead and significant growth has been built into its shares, I do feel the recent capital raising has de-risked its shares a touch.
This could arguably make it worth considering a small investment in the company today in my opinion.
