By Staff Writer
Digital Cabinet, South Africa’s cloud storage startup, has mandated HAVAÍC to undertake a R5m capital raise, which includes the conversion of the convertible loan, extended in July 2016, into equity.
The capital raise is based on the Company’s estimated valuation having doubled in the intervening period, said HAVAÍC, which is investment and advisory firm that specialises in early-stage, high-growth African businesses with proven concepts and global prospects.
Several of the convertible loan participants and all the HAVAÍC principals have committed to subscribe for additional equity. HAVAÍC is now engaging with its wider investment community to close the remaining investment opportunity.
HAVAÍC said the proceeds of the capital raise will be used by Digital Cabinet to increase its staff capacity, undertake a concerted marketing exercise with the objective of creating product and brand awareness, implementing further product development, and improving operational efficiencies.
Digital Cabinet, which offers companies cloud-based paperless document and workflow management solutions, has an international footprint, with operations in South Africa, Botswana, Australia and Israel.
HAVAÍC will represent investors who acquire shares in the Digital Capital, as a result of the loan note conversion and the fresh capital injection, on the company’s board of directors.
