Within the private placement started on September 28 and carried out on the Bucharest Stock Exchange, a total 100,000 shares were sold to investors at a price of RON50 to RON60 per share. The placement attracted 143 individual and professional investors and the offering was closed early, on the first day, being almost eight times oversubscribed, with investors placing orders worth over RON49 million. The final price per share was set at a maximum value of RON60.
Shares will be listed on the AeRO market of the Bucharest Stock Exchange until the end of 2021.
The private placement was brokered by TradeVille. Cornerstone Communications assisted the company as Licensed Advisor, while in-house lawyers of Softbinator Technologies, Andrada Damian and Dan Pasala, handled the legal aspects of this process.
“We thank our investors for their trust in us and look forward to your participation in the Softbinator Technologies team. With the funding raised today, we are confident that we will continue to grow rapidly and become a major player in the global software development services market. Approximately 95% of our revenue comes from contracts with non-Romanian companies, primarily the United States and Israel. Therefore, in order to achieve our growth goals, we are considering opening business development offices in the above two countries during the next period. At the same time, we are also investigating potential M & A transactions in the Romanian market. We want access to capital markets to be a differentiator in our local software development environment. This gives you the opportunity to raise capital to acquire a majority stake in other companies or to carry out M & A operations that pay with Softbinator Technologies shares, as long as the metrics are significantly better than the acquired company. At the level of services and products offered, we will soon launch two new service lines, Smart Contract Audits and DevOps Legacy App Migrations, and our first branded product, Softbinator Magic Stack”, said Daniel Ilinca, Founder and CEO of Softbinator Technologies.
Softbinator Technologies specializes in designing, developing and launching innovative products and has clients in the United States, Europe (UK, Germany, Romania), Middle East (Israel, Kuwait), and Asia (Singapore). The company currently has approximately 100 employees and collaborators operating at its headquarters in Bucharest and Constanta. Softbinator Technologies provides solutions and services to start-ups, unicorns and Fortune 500 clients, building an adaptive, interdisciplinary and flexible team that adheres to agile programming development methodologies. The organization’s profile is oriented towards product development, and team members are valued for their ability to deliver rapid results.
Prior to the private placement, major shareholders Daniel Ilinka, Simple Capital and Bitnet Group had sold 59,530 shares to 35 private individuals – employees, collaborators of the group and three legal entities, among which two investment vehicles of the Impetum Group and one from the Autonom Group. The transfer of shares took place at the highest price of 60 from a private placement.
Following the private placement, the company’s shareholders are Daniel Ilinca, founder and CEO holding 46.26% of the company’s shares, Bittnet Systems with a 18.99% ownership stake, the management team made up of Alexandru Dianu (COO), Marius Baisan (CTO) and Andreea Popa (CFO) holds a 10.8% stake, Simple Capital, an investment vehicle of the famous IT investor Andrei Pitis, holds 8.09%, plus two other investment vehicles, of the Impetum Group – with a 1.5% holding, and of the Autonom Group– with a 0.67% holding, as well as 35 natural persons, employees and collaborators of the group with a total ownership stake of 3.65%, while stock market investors own 10% of the shares.
Of the RON6 million amount raised following the private placement and from equity, a total RON2.5 million will be allotted until end-2022 to open business development offices in the US and Israel, RON3 million will be used to acquire other companies (M&A) engrossed in similar business activities in Romania, RON1.5 million will be used to launch two lines of new services – Smart Contracts Audits and DevOps Legacy App Migration, and another RON1.5 million will be used to launch and promote Softbinator Magic Stack (SMS), Softbinator’s first 100% product.
In 2020, Softbinator Technologies had a turnover of RON12.3 million and a net profit of RON2.6 million. In the first half of 2021, the company’s sales stood at RON7.78 million, up 43% year-on-year, and its net profit reached RON1.39 million, up 18% year-on-year. Softbinator Technologies estimates revenue of RON16.2 million and profit of RON3.4 million in 2021. Softbinator Technologies aims to grow at a combined annual growth rate of 70% over the next four years.