Funding will allow Swift to execute its strategy to build scale and grow profits in its key verticals of mining and resources, aged care and health and wellness.
Swift is a diversified telecommunication, advertising and content solutions provider with services including free-to-air television, pay television, video on demand, integrated advertising and analytics.
It generated $24.7 million in FY19, the majority of which was recurring revenue.
New CEO has clear FY20 priorities
Swift’s CEO Pippa Leary said: “We are pleased to partner with well-respected funds like L1 and Lind to secure this new financing facility.
“The additional funds strengthen our financial position and provide additional capital to execute our strategic roadmap.
“Our key priorities for FY20 are clear:
Build additional scale in our most profitable verticals; Mining and Resources, Aged Care and Health and Wellness;
Upgrade our product development skills and capabilities to bring profitable and scalable new products to market;
Develop new, diversified revenue streams through targeted advertising and SaaS subscriptions; and
Drive operating leverage, earnings growth and free cash flow as we grow our core business of content and connectivity solutions across our chosen verticals.
“This is a busy and productive period for Swift and we look forward to sharing our progress with you.”
Convertible note details
The $3.6 million financing agreement is with the L1 Capital Global Opportunities Master Fund and Lind Global Macro Fund LP.
Swift can draw down the $3.6 million in four tranches of $900,000 at 75-day intervals for e the purchase of convertible notes.
The convertible notes will be issued at a 10% discount to the $4 million face value of the notes, with a 12-month maturity from each tranche’s drawdown.
The conversion price for each tranche is equal to the lower of 92% of an agreed VWAP formula prior to a conversion notice or 130% of the 5-day VWAP on the day prior to the issuance of the tranche.
L1 and Lind add to high-profile investors
Swift continues to attract the interest of high-profile fund managers.
Earlier this year Swift gained a new major shareholder in Schroder Investment Management Australia Limited (SIMAL).
Schroders is a world-class asset manager operating from 32 countries across Europe, the Americas, Asia, the Middle East and Africa.