Updated Summary, page-56

Ziptel raises $5 million ahead of app launch

• David Swan
• 3 hours ago

ASX-listed telco start-up ZipTel has raised $5 million through an institutional placement, in a move it says will accelerate subscriber growth ahead of a new app launch.
The Australian company has developed a mobile app which enables consumers to send text messages and make international calls for free with other users, competing with apps like Viber and WhatsApp which was recently acquired by Facebook.
ZipTel said in a statement to the ASX it raised $5 million via a share placement to domestic and international institutions. The placement of 11,904,761 ordinary shares was completed at 42 cents a share.
After costs the raise has increased the company’s cash reserves to around $8 million, which Ziptel says will allow it to aggressively increase its marketing efforts and accelerate subscriber acquisitions ahead of the imminent launch of the ZipT application next month.
The company said live tests of its communications app shows voice calls boasted "crystal clear voice quality" even on bandwidths as little as 8kbps.

Major shareholder K2 Asset Management has participated in the raising to maintain its 16.3 per cent holding.
ZipTel’s co-founder and executive director Keaton Wallace said the news was a big step for the fledgling start-up.
“We’re delighted to have received such strong support from institutional and sophisticated investor," Mr Wallace said.
"This placement both validates our company strategy and strongly supports the development and roll out of the ZipT application and the ongoing growth of our AussieSim product. Through our distribution deals in place with Mpire Media and Airloyal, the funds raised will allow us to aggressively acquire an initial subscriber base for the ZipT which will in turn lead to further organic growth in subscribers through word of mouth or virality.
"With the launch of the ZipT application next month, we are another step closer to realising our goal of bringing a superior mobile based calling application, that operates all over the world under all network conditions including low bandwidth environments."
ZipTel's AussieSim product is a prepaid SIM aimed at travellers, while ZIpT is a mobile based VOIP communication application that allows consumers to SMS and make international calls from their mobile.

https://www.businessspectator.com.a...logy/ziptel-raises-5-million-ahead-app-launch