At the time of writing, the intelliHR Ltd (ASX: IHR) share price is up 173.97% to 20 cents in today's trade after the company emerged from a trading halt. The surge in the intelliHR share price came after the company released a business update and announced a capital raising before the ASX open.
What was in the the intelliHR business update?
The intelliHR business update came in the form of a presentation and gave investors an update about how the company has been performing.
In FY 2020, intelliHR had 18,433 subscribers. This was an increase of 92% on subscriber numbers in 2019. Cash receipts from customers increased 126% on the prior financial year to $1,501,000.
Annual recurring revenue was up 62% in FY 2020 to $1,955,000. Revenue from professional services was $322,000 which represented a 153% increase on the prior year.
The number of customers on the intelliHR platform increased to 153 in FY 2020 which is a year-on-year increase of 162%.
What are the details of the intelliHR capital raising?
The company announced that it intends to raise $5.5 million through a strategic placement and rights issue. The strategic placement will include issuing up to 33,333,333 ordinary shares to famous technology entrepreneur, Bevan Slattery. Mr Slattery, along with the company's largest shareholder, Colinton Capital Partners, will underwrite the entitlement offer.
The issue price of intelliHR shares purchased under the rights issue is 7.5 cents and existing shareholders will be able to purchase one share for every five shares held on the ex date of 10 August, 2020. The rights issue is expected to raise $3 million.
Senior partner at Colinton Partners, Simon Moore, commented on the capital raising, stating;
"We are very pleased to continue our support of intelliHR and welcome the involvement of one of Australia's leading technology entrepreneurs, Bevan Slattery, as a major shareholder in the company. The intelliHR business has demonstrated robust growth through the period of COVID-19, with strong growth in subscriber numbers, positive net revenue retention and the rapid launch of the COVID-19 Essentials platform."
According to Mr Moore, the capital raising will allow the company to accelerate its global growth and further invest in its capabilities.
About the intelliHR share price
intelliHR is a software-as-a-service (SaaS) provider that develops and sells cloud-based HR management software. The company has active users in Australia, New Zealand, Europe, North America, Asia and Africa.
In the quarter to 30 June 2020, the company used $637,000 cash in operations and had $2,791,000 cash at 30 June. This compared to cash of $3,428,000 at the end of the previous quarter.
The intelliHR share price is up 567% since its 52 week low of 3 cents and has returned 100% since the beginning of the year. The intelliHR share price is up 150% since this time last year.
