Wi-Fi company SkyFii raises $4 million

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news New institutional and retail investors have provided Australian wireless company SkyFii with over $4 million in new investment capital through the issue of new shares.

SkyFii said it would use the money raised from the share placement to accelerate the company’s expansion and strengthen its balance sheet. The company has announced several deals in recent times that include signing a master services agreement that will govern the deployment of public Wi-Fi access analytics to GPT Group’s shopping centres and an agreement to try Wi-Fi at a number of venues owned by hospitality group Merivale.

Last month, SkyFii revealed its plan on a wholesale agreement with UK-based Data Solutions. According to this agreement, the wholesaler can sell SkyFii’s services to Aruba Networks resellers as well as non-Aruba wireless resellers in the UK and Ireland. In the past year, the company has seen its services rollout in major shopping centres both across Australia, New Zealand and Brazil.

Recently, two of Sydney’s most well-known nightclubs — Ivy and Establishment — installed free Wi-Fi under a new agreement with SkyFii. CEO Wayne Arthur said: “Merivale is acknowledged as a leading operator of high quality dining and entertainment venues in Sydney, and we welcome the opportunity to partner with them.”

He added: “The trial provides the ideal mechanism for SkyFii to demonstrate the value of our services first-hand, and we look forward to it forming the foundation for a long and successful relationship with Merivale and its patrons.”

“It’s been just under a year since SkyFii listed and I’m delighted with the business rollout progress; Skyfii’s new rollout investor. The presentation released today demonstrates the strong revenue projections flowing from successful delivery on our expanding project pipeline. I’d like to thank Wilson HTM for its support and for the company and the current capital raising, welcoming new shareholders to the company and my sincere thanks to all those existing shareholders who have supported the offer.”

The $0.15 issue price for the issue of the $4 million in new shares represents a 6.3% discount to the company’s last closing price of $0.16. The placement proceeds will be utilised to accelerate the company’s business expansion and strengthen the balance sheet.

The company has achieved 15 per cent penetration of the Australian retail mall market over the last 12 months and has a $40 million+ revenue pipeline over five years from contracted customers and advanced stage sales, according to a recent investor presentation.