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Pointerra share price soars 77% on $2.5 million placement to tech entrepreneur

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On Tuesday, the Pointerra Ltd (ASX: 3DP) share price came out of a trading halt and shot up 77.78% to 9.6 cents per share at the time of writing. This follows the announcement of a $2.5 million placement to a strategic investor.

What was in the announcement?

According to the announcement, Australian technology entrepreneur Bevan Slattery has invested in Pointerra via a placement. The placement will consist of 50 million shares at 5 cents per share, to raise a total of $2.5 million. The investment will secure Mr Slattery’s corporate and commercial involvement in Pointerra.

The announcement stated: “The Board and management team at Pointerra is delighted to have secured Mr Slattery’s commitment to and involvement in the company via the strategic placement and looks forward to working with Bevan in coming months.”

According to the announcement, the proceeds will be used to accelerate the company’s cloud platform development and sales resources in Australian and US marketplaces. It will also be used to fund the company’s working capital.

Commenting on the deal, Mr Slattery stated:

When you understand the exponential growth in geospatial data that is being captured by third party systems that in turn create these massive data lakes worldwide, combined with the enormous growth of cloud computing and machine learning, you realise that the geospatial analytics platforms that have been built from the ground up in the “new world” will quickly surpass traditional methods of 3D geospatial analysis.

After speaking with the management team and understanding our aligned vision, I am excited that Pointerra has the potential to be a world leader in this field and ultimately to help feed the geospatial systems behind industries including telecommunications, renewable energy and autonomous vehicles. I am tremendously excited that an Australian team is building this global capability.

Bevan Slattery has over 20 years’ experience in founding and investing in early stage technology companies and is the co-founder of PIPE Networks Limited. He is also the founder of NextDC Ltd (ASX: NXT), Superloop Ltd (ASX: SLC), Megaport Ltd (ASX:MP1) and NextDC spin-out, Asia Pacific Data Centre Trust. Mr Slattery is currently a non-executive chairman of Megaport and Superloop. 

About the Pointerra share price

Pointerra provide cloud computing solutions for 3D geospatial data technology. The company processes 3D data and allows storage on the cloud, allowing for very large 3D datasets to be used without the need for high power computing. The company’s platform can be accessed anywhere from any device.

On 30 April, Pointerra announced that its annual contract value had grown by 17% during the previous 3 months to $3.32 million. 

In the quarter to March 2020, the company had cash receipts of $530,000 compared to $180,000 in the second quarter of the 2020 financial year. It announced that it was moving closer to a cashflow positive position. The company had a cash balance of $2.2 million at the end of the March quarter, down from a balance of $2.5 million at the beginning of the March quarter.

The Pointerra share price is up 540% from its 52-week low of 1.5 cents. It has returned 60% since the beginning of the year. The Pointerra share price is up 104% since this time last year.

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Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of MEGAPORT FPO and SUPERLOOP FPO. The Motley Fool Australia has recommended MEGAPORT FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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