Cloud-based enterprise software system company Manalto (ASX:MTL) will raise close to $3.1 million from the issue of 44.2 million shares at $0.07 to sophisticated and professional investors.
Funds raised from the placement are to be applied to the continuing day to day operations of the company as working capital.
Manalto will also launch a share purchase plan at the same price per share which could raise up to $1.9 million.
The company addresses the social media challenges facing businesses where they have inconsistent branding across their social media assets - at scale.
Manalto recently consolidated its global footprint for cloud-based services with a string of distribution agreements.
New commercial deals for Manalto have expanded its presence across the UK, Europe, Asia, North America and Australia.
Highlighting the potential for revenue generation in the area, forecasts have called for social media marketing spending in the U.S. alone to increase from a level of US$7.5 billion in 2014 to US$17.3 billion in 2019.
By 2017, social network ad spending will reach US$36 billion, representing 16% of all digital ad spending globally.
Targeted at small and medium-sized businesses, Soshlr delivers time savings and single visibility of social media activity across Facebook, Twitter, Linkedin and Instagram.
The purpose-built package is packaged and provisioned for resellers such as service providers, telecommunications companies and hosting companies, with upsell paths in a range of A$36 to $3,000 per annum.
Manalto also generates revenue through its Enterprise solution, a social media technical support product distributed direct to market via large, decentralised enterprise partners with an expansive social media presence.
Enterprise sales efforts since August have resulted in 1,188 licenses contracted with an estimated 36,310 addressable licenses on trial across businesses such as hotel groups, luxury brands, entertainment companies and restaurant groups.
In September, Manalto sealed its first major enterprise deal with leading U.S. franchise organisation, the Dwyer Group, which appointed the company as its technology provider to underpin social media management.
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