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- Release Date: 02/02/12 11:30
- Summary: GENERAL: XRO: Xero raises $20m to fund global growth and offers SPP
- Price Sensitive: No
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XRO
02/02/2012 09:30
GENERAL
REL: 0930 HRS Xero Limited
GENERAL: XRO: Xero raises $20m to fund global growth and offers SPP
Xero online accounting software (XRO) has raised $20m through a placement to
existing strategic investors to assist in accelerating its growth in large
overseas markets.
Xero was named New Zealand's fastest growing exporter in the 2011 Deloitte
Fast 50 Index. The company's Committed Monthly Revenue (CMR) is now $1.75m or
$21m annualized - 50% of which comes from offshore.
Growth in regions outside New Zealand is one of the main drivers behind the
company's recent forecast that it expects revenue for the full year ended 31
March 2012 to double 2011 revenue of $9.3m.
The traction of Xero in offshore markets further validates the company's
product and business model. Xero will use the funds to accelerate growth in
Australia, the UK and the USA.
Subscribers to the Placement include:
- Two independent directors Sam Morgan and Sam Knowles (who recently became
independent chairman)
- Australian based director and former co-founder of MYOB Craig Winkler
- Valar Ventures, the New Zealand investment vehicle of US based Peter Thiel
- a former co-founder of Paypal and one of the first external investors in
Facebook
The Placement price of NZ$2.75 per share represented a small premium to the
volume weighted average (VWAP) share price of Xero at the time the investors
were approached.
Shareholder Purchase Plan
The Board of Xero would like to give existing New Zealand based shareholders
the opportunity to acquire new Xero shares under the same terms as the
Placement.
Under a Shareholder Purchase Plan (SPP), Xero shareholders can subscribe for
up to NZ$15,000 of additional Xero shares (being the maximum amount permitted
under the NZX Listing Rules) at NZ$2.75 per share.
Xero shareholders with registered addresses in New Zealand may participate in
the SPP if they were on the Xero share register at the close of business on
14 February 2012.
The SPP documents, including an application form, will be sent to
shareholders in mid-February.
For more information contact:
Rod Drury Ross Jenkins
Xero CEO Xero CFO
[email protected] [email protected]
+64 27 6000 007 +64 21 963 909
End CA:00219110 For:XRO Type:GENERAL Time:2012-02-02 09:30:07
