RABI:CC - March 2022 Quarterly Update
(TheNewswire)
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Invoiced revenues of $67,398 delivered in Q12022.
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as successfully completed a dual listing onTSX.
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Completion of funding rounds in total amount ofUS$3.25M in a premium price of USD$0.04 (CAD $0.05).
May 2, 2022 – TheNewswire - AdRabbit limited (TSXV:RABI), (ASX:RAB) (AdRabbit or theCompany), a SaaS solutions provider for small and medium businesses,today releases its Appendix 4C for the quarter ended 31 March 2022 andprovides a review of its operational highlights. AdRabbit develops an AI-based advertising and marketingplatform for small and medium companies that enables them to runautomated large-scale advertising and marketing campaigns both onlineand on social media, including top-tier networks such as Facebook. TheAdRabbit platform provides a complete advertising cycle, from addesign and creation, budget and channel recommendations, analytics,and campaign management, to the lead funnel. The AdRabbit platform isaccessible as a mobile application on iOS and Android
Name and Ticker change:
In January 2022, the shareholders of the Companyapproved, in an extraordinary general meeting, to change the name ofthe Company from AppsVillage Australia Limited to AdRabbit Limited.The Ordinary Shares will continue to trade on the ASX under the tickercode RAB.
Summary of expenditure in the quarter
During the first quarter of 2022, the Companysuccessfully completed a capital raising and listing on TSXV.
The overall quarterly expenses are to A$2,020k,compared to A$780k in Q1, 2021. The rise in expenses is primarilyattributed to non-recurring one off expenses relating to thecomplete fund raising, the dual listing on TSXV and paying thepayments postponed from Q4, 2021.
The Company has reduced its quarterly expenditure onpromotional activities from A$125k in Q1, 2021 to A$71k in calendar Q12022, focusing on improving and further developing its next generationplatform, AdRabbit. Following launch of this new platform the Companyanticipates increasing its spend to drive adoption of the newplatform.
The Company also strengthened its staff to rollout thenew platform spending A$570k in Q1, 2022 compared to A$447k in Q1,2021.
The Company has also increased its administration andcorporate costs to A$1,408k in Q1, 2022 compared to A$279k in Q1,2021. The vast majority of this growth is attributed to expensesrelated to the fund raising which was completed in Q1. 2022 and duallisting on TSXV.
The payments to related parties of the entity and theirassociates in section 6 of the Appendix 4C includes payments such asremuneration to executive directors and non-executive directors’fees.
Operational and financial update
In line with its cost reduction strategy, the Companyhas continued to deliver decreases in its ongoing expenditure, whilefocusing on profitable growth.
The payments to related parties of the entity and theirassociates in section 6 of the Appendix 4C includes payments such asremuneration to executive directors and non-executive directors of theCompany.
The Company successfully completed it dual listing onTSX.
North America is a key growth market for AdRabbit SMBproduct offering and through the dual listing on the TSXV.
TSX listing
On February 7, 2022 the Company's Ordinary Sharescommenced trading on the TSX under the ticker symbol RABI. TheOrdinary Shares will continue to trade on the ASX under the tickerRAB.
On 23 March, 2022 the Company submitted a formalapplication for delisting from the ASX.
TikTok partnership expansion
On March 31 2022, RABI announced that as part of theexpanded partnership, TikTok will now provide AdRabbit with increasedaccess to its network of small and medium-sized business customers.TikTok will utilize a new set of algorithms to identify and acquire alarger number of long-term small and medium-sized business customersfor AdRabbit, more accurately and at a lower cost. The partnershipsprogram will also include a detailed media plan, optimization sessionand recurring communication and support from TikTok’s performanceteam, creative sessions and incentives, access to new features andbetas.
AdRabbit https://ad-rabbit.com/
Delisting from ASX
On March 23, 2022 AdRabbit announced its intention todelist from the ASX and focus on the North American market. TheCompany will be in a stronger position to broaden its internationalprofile not only with SMBs, but also with institutional and other newinvestors in that market. On 2 May 2022, an EGM will occur wherebyshareholders will be requested to approve this delisting.
AdRabbit is an affordable digital advertising andmarketing platform that allows SMBs to design, build and launchadvertising campaigns instantly on social media platforms and top tiernetworks such as Facebook, directly from their mobile. AdRabbit actsas a virtual Chief Marketing Officer for those SMBs who cannot afforda human CMO. The platform will leverage AaRabbit, to ensure eachcampaign yields maximum customer reach, call to action and userconversion results.
AdRabbit App is free to use, however the Companycharges a fee on top of the SMBs advertising expenditure.
Funding
During 2021 the Company has entered into agreements tosecure a funding round in total amount of US$3.25M in a premium priceof US$0.04 (CAD $0.05). An amount of US$1.05M was received during 2021and the rest was received in 2022. In February 2022 and upon thecompletion of the funding, conversion of US$3,082,000 principal amount(and certain accrued interest on such amount) under the Series A and BConvertible Loan have been released to the Company and US$168,000principal amount (and accrued interest on such amount) remainsoutstanding and subject to conversion at a later date.
-Ends-
This announcement has been approved and authorised forrelease by Max Bluvband, AdRabbit CEO
For further information, please contact:
| Investor Relations Rod Hinchcliffe Media and Capital Partners P: 04 1227 7377 |
| Media Enquiries Melissa Hamilton Media and Capital Partners P: 04 1775 0274 |
About AdRabbit Limited
AdRabbit provides an easy and inexpensive SAAS solutionthat allows small-to-medium businesses to create and manage their ownmobile application as a means of connecting with their customers andgrowing their business.
AdRabbit’s technology has automated the design,development, maintenance and marketing of mobile apps, allowing anybusiness to build, preview and launch their own application withouthave any code writing or digital marketing knowledge.
Quarterly cash flowreport for entities
subject to Listing Rule 4.7B
| Current quarter |
| Year to date (three months) |
| 1. |
| Cash flows from operating activities |
| 67,398 |
| 67,398 |
| 1.1 |
| Receipts from customers |
| 1.2 |
| Payments for |
| (14,322) |
| (14,322) |
|
|
| - |
| - |
|
| (70,792) |
| (70,792) |
|
| (42,518) |
| (42,518) |
|
| (569,956) |
| (569,956) |
|
| (1,407,458) |
| 1.3 |
| Dividends received (seenote 3) |
| - |
| - |
| 1.4 |
| Interest received |
| - |
| - |
| 1.5 |
| Interest and other costs of finance paid |
| (755) |
| (755) |
| 1.6 |
| Income taxes paid |
| - |
| - |
| 1.7 |
| Government grants and tax incentives |
| - |
| - |
| 1.8 |
| Other (VAT repayments) |
| 17,925 |
| 17,925 |
| 1.9 |
| Net cash from / (used in) operating activities |
| (2,020,478) |
| (2,020,478) |
| 2. |
| Cash flows from investing activities |
| 2.1 |
| Payments to acquire or for: |
|
|
| - |
| - |
|
| - |
| - |
|
| - |
| - |
|
| - |
| - |
|
| - |
| - |
| 2.2 |
| Proceeds from disposal of: |
| - |
| - |
|
|
| - |
| - |
|
| - |
| - |
|
| - |
| - |
|
| - |
| - |
|
| - |
| - |
| 2.3 |
| Cash flows from loans to other entities |
| - |
| - |
| 2.4 |
| Dividends received (see note 3) |
| - |
| - |
| 2.5 |
| Other (provide details if material) |
| - |
| - |
| 2.6 |
| Net cash from / (used in) investing activities |
| - |
| - |
| 3. |
| Cash flows from financing activities |
| 3,037,845 |
| 3,037,845 |
| 3.1 |
| Proceeds from issues of equity securities (excluding convertible debtsecurities) |
| 3.2 |
| Proceeds from issue of convertible debt securities |
| - |
| - |
| 3.3 |
| Proceeds from exercise of options |
| - |
| - |
| 3.4 |
| Transaction costs related to issues of equity securities orconvertible debt securities |
| - |
| - |
| 3.5 |
| Proceeds from borrowings |
| - |
| - |
| 3.6 |
| Repayment of borrowings |
| - |
| - |
| 3.7 |
| Transaction costs related to loans and borrowings |
| - |
| - |
| 3.8 |
| Dividends paid |
| - |
| - |
| 3.9 |
| Other (provide details if material) |
| - |
| - |
| 3.10 |
| Net cash from / (used in) financing activities |
| 3,037,845 |
| 3,037,845 |
| 4. |
| Net increase / (decrease) in cash and cash equivalents for the period |
| 160,870 |
| 160,870 |
| 4.1 |
| Cash and cash equivalents at beginning of period |
| 4.2 |
| Net cash from / (used in) operating activities (item 1.9 above) |
| (2,020,478) |
| (2,020,478) |
| 4.3 |
| Net cash from / (used in) investing activities (item 2.6 above) |
| - |
| - |
| 4.4 |
| Net cash from / (used in) financing activities (item 3.10 above) |
| 3,037,845 |
| 3,037,845 |
| 4.5 |
| Effect of movement in exchange rates on cash held |
| (71,765) |
| (71,765) |
| 4.6 |
| Cash and cash equivalents at end of period |
| 1,106,472 |
| 1,106,472 |
| 8. |
|
|
| 8.1 |
| Net cash from / (used in) operating activities (item 1.9) |
| (2,020,478) |
| 8.2 |
| Cash and cash equivalents at quarter end (item 4.6) |
| 1,106,472 |
| 8.3 |
| Unused finance facilities available at quarter end (item 7.5) |
| - |
| 8.4 |
| Total available funding (item 8.2 + item 8.3) |
| 1,106,472 |
| 8.5 |
| Estimated quarters of funding available (item 8.4divided by item 8.1) |
| 0.5 |
| Note: if the entity has reported positive net operatingcash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, afigure for the estimated quarters of funding available must beincluded in item 8.5. |
| 8.6 |
| If item 8.5 is less than 2 quarters, please provide answers to thefollowing questions: |
| 8.6.1 Does the entity expect that it will continue tohave the current level of net operating cash flows for the time beingand, if not, why not? |
| Answer: No it does not, the level of outflows was unusually high dueto the cost of raising capital, costs associated with listing on TSXV(both non-recurring items) and payment of historical creditors. |
| 8.6.2 Has the entity taken any steps, or does itpropose to take any steps, to raise further cash to fund itsoperations and, if so, what are those steps and how likely does itbelieve that they will be successful? |
| Answer: The company has commenced trading on the TSXV and is lookingat various funding optionswhich remain incomplete at this stage. |
| 8.6.3 Does the entity expect to be able to continueits operations and to meet its business objectives and, if so, on whatbasis? |
| Answer: Based on its ability to raise more funds, the entity expectsto be able to continue its ongoing operations. |
| Note: where item 8.5 is less than 2 quarters, all ofquestions 8.6.1, 8.6.2 and 8.6.3 above must be answered. |
1 This statement has been prepared inaccordance with accounting standards and policies which comply withListing Rule 19.11A.
2 This statement gives a true and fair viewof the matters disclosed.
29 April 2022
Date: ...................................................................................
By the Board
Authorised by: ...................................................................................
(Name of body or officer authorising release – seenote 4)
1. This quarterly cash flow report and theaccompanying activity report provide a basis for informing the marketabout the entity’s activities for the past quarter, how they havebeen financed and the effect this has had on its cash position. Anentity that wishes to disclose additional information over and abovethe minimum required under the Listing Rules is encouraged to doso.
2. If this quarterly cash flow report hasbeen prepared in accordance with Australian Accounting Standards, thedefinitions in, and provisions of, AASB 107:Statement of Cash Flows apply to this report. Ifthis quarterly cash flow report has been prepared in accordance withother accounting standards agreed by ASX pursuant to ListingRule 19.11A, the corresponding equivalent standard applies to thisreport.
3. Dividends receivedmay be classified either as cash flows from operating activities orcash flows from investing activities, depending on the accountingpolicy of the entity.
4. If this report has been authorised forrelease to the market by your board of directors, you can insert here:“By the board”. If it has been authorised for release to themarket by a committee of your board of directors, you can insert here:“By the [ name of board committee – eg Audit and RiskCommittee ]”. If it has been authorised forrelease to the market by a disclosure committee, you can insert here:“By the Disclosure Committee”.
5. If this report has been authorised forrelease to the market by your board of directors and you wish to holdyourself out as complying with recommendation 4.2 of the ASXCorporate Governance Council’s CorporateGovernance Principles and Recommendations , theboard should have received a declaration from its CEO and CFO that, intheir opinion, the financial records of the entity have been properlymaintained, that this report complies with the appropriate accountingstandards and gives a true and fair view of the cash flows of theentity, and that their opinion has been formed on the basis of a soundsystem of risk management and internal control which is operatingeffectively.
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