Institutions Back Advantage’s E-Commerce Strategy
Advantage Group Limited (NZSE: ADV) today announced that it has agreed to place 2.6 million ordinary shares with leading blue-chip financial institutions at a price of $2.50 per share for a total of $6.5 million.
The placement, to be
transacted at prevailing market prices, is a further
indication of institutional support for Advantage’s
“We welcome institutional interest in Advantage,” says Chairman Evan Christian. “The feedback we have received from institutions since they joined the register is that they endorse Advantage’s vision, management capabilities and early entry to and expertise in the rapidly growing category of business-to-business e-commerce. They have indicated that they have considerable confidence in the company’s long-term growth prospects.”
“This placement has been tagged for expanding Advantage’s e-commerce growth strategy to ensure Advantage retains leadership in the business-to-business e-commerce space,” says Advantage CEO Greg Cross. “E-commerce now represents over 60% of Advantage’s revenues and will be the foundation for the company’s future growth. It’s the fastest growing commercial sector worldwide - Goldman Sachs reports that they anticipate business-to-business e-commerce will reach $1.5 trillion by 2004 and that companies such as Advantage involved in building e-commerce infrastructure are best positioned to benefit from this growth. Advantage is one of the few listed New Zealand companies structured to participate in it.”
Limited, an NZSE listed company, is a leading supplier of
e-commerce and transaction processing solutions in New
Zealand, Australia and throughout the Southern Hemisphere.
The company has three business units: business-to-business
e-commerce, retail solutions and point-of-sale equipment.
It provides web development capabilities, software
development, transaction processing and funds transfer
capabilities to enable end-to-end e-commerce solutions.