Elsight raises $8 million to expedite Australian growth in ‘breakthrough year’

Elsight has raised $8 mil­lion in con­vert­ible notes as it works to build cap­i­tal to fund its growth strat­e­gy with 2022 described as a ‘break­through year’, through an offer of secured con­vert­ible notes to Aus­tralian insti­tu­tions and investors.

Under the terms of the con­vert­ible note sub­scrip­tion deed, sub­scrip­tion monies will be advanced to the com­pa­ny in two tranch­es, the first tranche of $6m will be advanced to the com­pa­ny with­in 30 days.

The final tranche of $2m will be advanced sub­ject to the com­pa­ny receiv­ing share­hold­er approval. Unless con­vert­ed by a note­hold­er pri­or, all con­vert­ible notes out­stand­ing must be repaid in full on matu­ri­ty.

Gle­nea­gle Secu­ri­ties act­ed as lead man­ag­er to the cap­i­tal raise, with a fee of 4% of funds raised. Dur­ing 2022, Elsight has signed sev­er­al mul­ti-year com­mer­cial agree­ments with var­i­ous part­ners and while ini­tial orders have been received, the com­pa­ny is expect­ing mul­ti­ple repeat orders under these agree­ments.

Among key con­tracts to sup­ply Elsight’s glob­al­ly lead­ing plat­form Halo that deliv­ers fast, secure end-to-end data trans­mis­sion and to ensure safe con­tin­u­ous fly­ing Beyond Visu­al Line of Sight (BVLOS) is one with Drone­Up, which was cho­sen by US Shop­ping giant Wal­mart to enable drone deliv­ery of gro­ceries and oth­er sup­plies includ­ing Covid-19 test kits to US house­holds.

Funds raised will enable the com­pa­ny to con­tin­ue its growth strat­e­gy and fund addi­tion­al cap­i­tal expen­di­ture to ensure it is able to sat­is­fy the unmanned mar­ket demands while head­ing for main­stream com­mer­cial adap­ta­tion, and will also be applied to gen­er­al work­ing cap­i­tal require­ments of the busi­ness as it con­tin­ues to grow and scale.

Elsight CEO Yoav Ami­tai said 2022 has been a break­through year for Elsight as it deliv­ered sev­er­al com­mer­cial agree­ments and laid the foun­da­tions for fur­ther growth as the unmanned indus­try con­tin­ues to push towards main­stream com­mer­cial adop­tion in var­i­ous sec­tors.

Ami­tai said: “The com­pa­ny is expect­ing sev­er­al repeat orders with our part­ners over the near term and this cap­i­tal raise ensures we are well placed to con­tin­ue to posi­tion Elsight as mar­ket leader. I would like to thank our share­hold­ers and new investors for sup­port­ing the com­pa­ny through this next excit­ing growth phase for the busi­ness.”

Yes­ter­day, The Aus­tralian Gov­ern­ment part­nered with indus­try to ensure the take-up of emerg­ing avi­a­tion tech­nol­o­gy in Aus­tralia, with more than $18 mil­lion award­ed for 12 projects under the first round of the Emerg­ing Avi­a­tion Tech­nol­o­gy Part­ner­ships (EATP) Pro­gramme.

More than $18 mil­lion for Aus­tralian emerg­ing avi­a­tion tech­nol­o­gy part­ner­ships