Australian software company TZ is reporting US purchase orders of AUD $7.75 million for the four months from the start of July to the end of October, representing a 40% increase vs the same period last year.

During the same period last year, TZ recorded AUD $5.5 million in sales.

Hot on the heels of these fresh contract wins, the company secured an additional $3.45 million in funding to support its ongoing expansion.

The company raised the money through a strongly supported placement (led by Reach Markets) which saw investors purchase roughly 27.57 million fully paid ordinary shares at $0.125 each.

TZ CEO Mario Vecchio said he was pleased to see the placement was met with such vigorous enthusiasm from investors, noting the company’s recent work to restructure itself is beginning to resonate with markets.

“The potential for TZ to become a global powerhouse in its target markets has always been there, but has in the past been mired down by less-than-ideal debt arrangements and a misplaced focus on hardware rather than software,” he said.

“In the past year we’ve firmed up the ground beneath the company’s feet and taken the first steps towards growth. Following the placement, we are well-placed to build on this recent momentum.”

A portion of capital will be used to further pay down the company’s debts, which were significantly reduced last year under a recapitalisation plan led by then-CEO Scott Beeton.

The remainder will be used as general working capital. The funds raised will enable TZ to focus on supporting the planned business growth.

Reach Markets CEO Patrick Nelson said the firm commitments from investors demonstrated growing interest in innovative Internet of Things (IoT) companies following COVID.

“The IoT space has been gathering pace in recent years but the past few months has seen that accelerate,” he said.

“The past 18 months have highlighted just how important access control is and will continue to be, both in terms of protecting the health of staff and consumers and in better understanding how people use the space around them, through data.”

The placement comes less than a week after TZ announced it had secured approximately $1.1  million dollars in new contracts across Australia.

These include a purchase order from the Chevron Corporation to supply electronics and software for 2,800 smart lockers.

To stay up to date with TZ Limited news and announcements, please register your details at the TZ Limited investor centre.

Reach Corporate provides Corporate Advisory Services, including managing investor communications on behalf of TZL and will receive fees for its services. 

Sources:

• TZ Limited ASX Announcement, TZ receives over a million dollars in new contracts in Australia
• Reach Markets The Insider, Ready, debt, go: TZ acquires new, more cost-effective debt facility