Renounceable Rights Issue Offer

22 March 2023


Geo Limited (NZX:GEO) (Geo) presents shareholders with the opportunity to participate in an Offer of New Shares and Warrants to raise up to $1.51 million. The Offer accompanying this announcement will complete the capital raising plans we announced in November 2022, and comprises:
• a one for four renounceable rights issue priced at $0.033 per share; and
• the issue of one Warrant for every five New Shares subscribed, exercisable at $0.033 at any time over four years from the date the Warrant is issued.

Funds raised in 2021 have been used to re-engineer every customer touchpoint, enabling GEO to focus on a single, scalable platform driving faster revenue growth with reduced churn.

Geo has now released its new mobile app and a new web console with increased functionality and an improved customer experience. We have also launched a new website and new sales and other support systems. These are already improving sales conversions and driving revenue growth.

Automated SMS notifications and a payment platform are being rolled out between now and 30 June. These are GEO's first incremental revenue streams outside of base subscriptions and are features with strong market validation and existing customer usage.

Before these platform upgrades, new customer additions were the sole revenue lever, whereas today GEO has three levers to drive growth:
1. new customer sales;
2. product price increases; and
3. new revenue-generating product features.

In November 2022 Geo provided guidance to the market that $3.5m in incremental capital would be required to reach breakeven. On 1 March 2023, the Company announced that it had secured a $2.5 million secured debt facility from Pioneer Capital. The Board believes that arranging this debt facility is in the best interests of shareholders as it reduces the level of share issuances required to achieve breakeven.

The investment made by Geo over the past 18 months has already improved the company’s trajectory, with 7% monthly recurring revenue (MRR) growth achieved since 31 December 2022. The Company has guided that it expects to achieve at least 40% growth in MRR during calendar 2023, with December 2023 MRR expected to be approximately $385,000, monthly cash burn reduced to approximately $110,000 and year end cash of approximately $1.2m.

Information about the Offer, including eligibility criteria and how to participate, is set out in the Offer Document. It should be read together with the Investor Presentation released on 7 March 2023 and the Company’s other market releases, which are available at www.nzx.com under the ticker code “GEO”. These documents contain important information. We encourage you to read this Offer Document and the Investor Presentation carefully, ensure that your contact information is up to date, and importantly, seek independent financial advice before investing.

North Ridge Partners has agreed to underwrite $1.2m of the Offer on the terms set out in the Underwriting Agreement and as further described in section 3.14. Geo's Directors and senior management team intend to take up their Entitlements in the Offer, and we are pleased to report that major shareholders amounting to 34% of the share register have committed to their Entitlements and have committed to apply for an additional 24% of the New Shares under the Oversubscription Facility should they be available.

Geo's Directors recommend this Rights Issue to shareholders.

Rod Snodgrass
Chair

Ends


For more information:

Tim Molloy
Chief Executive Officer
Tel: +61 411 592 180
Email [email protected]

About GEO:
GEO is a leading SaaS business that provides smart software platforms for tradies, field and home service businesses. The market for GEO’s products is growing quickly as the global mobile workforce expands. GEO’s simple yet powerful software platform helps business owners reduce the complexity of running their business whilst saving time and improving cashflow. For more information: www.geoop.com

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Announcement PDF