Australian Legal technology company thedocyard has issued a prospectus to raise $4m to $5m and list on the ASX.
thedocyard is a cloud-based deal space for managing the entire lifecycle of any corporate or commercial transaction. The company describes it as an end-to-end deal management platform.
The proposed listing date is 14 February 2020.
Funds from the capital raising are intended to be used for sales and marketing and to establish a based in the UK. Around 35% of the funds raised will be used for product development.
The prospectus points out the competitive landscape: “Professional services collaboration platforms in particular High Q and Doxly are our main competitors. We also compete with the myriad of virtual data room providers in the M&A context where a customer is only looking for a secure file sharing solution (not our broader product offer).”
Shares are being listed at 20 cents each. Following a successful listing, CEO and Founder Stuart Clout will be a 26.5% shareholder, valued at almost $7m (on the basis that $4m is raised from the IPO). The market capitalisation of the company will be $26.4 million. He is not the sole owner of the current company.
thedocyard was founded in 2016. The prospectus financial statements show that the company more than doubled its sales revenue in FY2019 from $245K in FY2018 to $553K in FY2019. At this modest level of revenue, the company has been accumulating losses. On a cash basis, receipts from customers in FY2019 was $486K.