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  • TZ Limited Raising $3.75M To Fund Revenue Growth 0 comments
    Apr 22, 2014 7:45 PM

    TZ Limited (ASX: TZL) is raising $3.75 million through a placement of 25 million shares at $0.15 to various institutional and sophisticated investors, which will fund revenue growth of two of its key businesses in 2014/2015.

    The company's Infrastructure Protection (NYSEARCA:IXP) business offers extremely affordable and highly scalable micro-security and environmental monitoring solutions while its Packaged Asset Delivery (PAD) provides electronic parcel logistics solutions including smart lockers.

    TZ is also actively pursuing a number of major tenders and is in the final stages of negotiation on several strategically significant contracts.

    The company noted that its ability to demonstrate the capacity to support implementation and to show a strong balance sheet is paramount to the finalisation of these contracts.

    Tender wins will be announced once contract negotiations have been completed and the supply agreements finalised.

    "The company is very pleased that it was able to achieve a successful placement in light of what are challenging market conditions for technology companies," executive chairman Mark Bouris said.

    Share Placement

    Patersons Securities acted as the Lead Manager in securing the placement for TZ along with Morgans Financial, which acted as Co-Lead Manager.

    It is anticipated that the settlement and allotment of the new shares under the placement will occur on Monday, 28 April 2014, and that the new shares will be available to trade on the ASX on Tuesday, 29 April 2014.

    Recent Activity

    TZ has enjoyed a number of successes in recent months with the company named the specified solution for the integrated access management of employee Day Lockers to be deployed at one of Australia's top four banks.

    It has also fulfilled purchase orders for seven intelligent locker banks worth more than A$250,000 with a well-known global Consumer Electronics corporation customer that is headquartered in California.

    Negotiations are also underway with this company regarding a master supply agreement that will see TZ's Packaged Asset Solutions become this customer's preferred package delivery system provider for its ongoing requirements.

    TZ had last month secured further smart parcel locker banks from Singapore Post and had earlier this year won locker orders for initial trial programs from Pos Indonesia and Italian postal service Poste Italiane.

    Analysis

    The $3.75 million share placement demonstrates the confidence that investors have in TZ Limited's Infrastructure Protection and Packaged Asset Delivery, which includes smart lockers, businesses.

    It also positions the company to close a number of key contracts, which will in turn fuel its revenues going forward.

    Some of its recent wins have the potential to lead to substantial new orders with its naming as the specified solution for employee Day Lockers at one of Australia's big four banks a notable example given that it could require over 10,000 lockers to be installed and electronically managed with supply beginning in mid-2014.

    Also noteworthy is its order for smart locker banks from the California-based corporation, which could lead to its being named the customer's preferred package delivery system provider.

    This will lead to another pipeline of secured business if confirmed.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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