Zoom2u in raising at 11c per share, will acquire Talcasoft

Zoom2u, led by Steve Orenstein, is raising $1.5m, giving the company a market capitalisation of $20.9m.

Zoom2u, a local delivery platform which connects users with couriers in the area for same day delivery, is raising $1.5m, giving the company a market capitalisation of $20.9m.

Zoom2u has engaged Fosters to manage the raise, which will be by way of a placement of 13.6 million new shares at 11c. Shares last traded at 14c before being placed in halt.

According to a term sheet circulated among investors, directors and their related entities have committed to subscribe for up to $180,000 in the offer. Zoom2u has also agreed to acquire Talcasoft, a provider of software products for the transport industry, in a deal that gives that business an enterprise value of $2m. “The acquisition will fast track development of Zoom2u’s SaaS product, Locate2u, through implementation of Talcasoft functionality providing access to the transport management systems market worth $23bn,” the documents read.

Talcasoft managing director Mark Power will join Zoom2u. The purchase price represents 2.6x annual recurring revenue in the last financial year and 1.9x total revenue. “Talcasoft will enable Locate2u to target a broader range of customers in international markets,” an investor presentation reads.

Zoom2u has also secured a $4m debt facility with Pure Asset Management.

In a trading update circulated to investors, Zoom2u said it had generated $904,000 in revenues for the first quarter of the 2023 financial year, with trailing 12 month revenues of $4.2m – up 23 per cent on the prior corresponding period.

Zoom2u is expected to resume trading on Friday.