Nexion Group Ltd (ASX:NNG) has raised $2.75m through a share placement managed by Cadmon Advisory at 16c per share. Nexion is a leading provider of enterprise ICT solutions including public, private and hybrid cloud.
Nexion has recently experienced a significant increase in sales and is expecting this to continue, requiring replenishment of the companies working capital following the acquisition of Blue Sky Telecom of $2m.
NEXION founder and CEO, Paul Glass commented: “In August 2021, NEXION completed the highly accretive acquisition of Blue Sky Telecom for a relatively modest cost of $2.0 million. Blue Sky Telecom Pty Ltd added $3.4 million in annual recurring revenue to the group and provided the additional technicians needed to deliver the growing pipeline of work we had sold in the past three quarters. This represented an extremely attractive acquisition for NEXION but required us to use a material portion of the Company’s cash balance raised at the IPO earlier this year.
“NEXION’s growth has been outstanding, posting record quarterly revenue in Q1 of FY22 and increasing the recurring revenue base by almost 300% in just three quarters since IPO.”