Reckon invests further in nQ Zebraworks to pursue cloud growth
ASX-listed Reckon have advised that it, together with minority shareholders, it has agreed funding for nQ Zebraworks to continue to pursue cloud growth and, as a result, has participated in a US$4.5 million (AUD$7.0 million) preference share issue by nQueue Zebraworks Inc, a Reckon subsidiary and the holding company for the Legal Group, trading as nQ Zebraworks.
Reckon’s commitment is US$3.75 million (AUD$5.9 million), which includes Reckon’s pro rata entitlement and a portion of the shortfall as a result of certain minority shareholders not contributing. Reckon will contribute US$1.6 million (AUD$2.57 million) on issue of the preference shares, via conversion of existing debt, with the balance of the commitment at call by nQueue Zebraworks Inc. The balance is anticipated to be fully called by the end of 2026.
The balance of the capital raising was through existing nQueue Zebraworks Inc. shareholders, including nQ Zebraworks CEO, Bill Bice and CRO, Ken Bassham.
Reckon’s contribution will be funded through earnings from existing operations and the company’s existing debt facilities. The material terms of the preference shares are included in the Annexure to this announcement together with the capital structure of nQueue Zebraworks Inc. post preference share issue.
Reckon Group CEO, Sam Allert said, “We have committed significant resources to the development of nQ Zebraworks’ cloud-based technology and the build out of its sales and support functions over the past few years. We remain confident that the addressable market for the BillingQ offering justifies our continued investment. Leading indicators are positive with an increase in orders taken over 2023 including our largest individual annual recurring revenue sale.
“In addition to continued product development, this funding will allow nQ Zebraworks to pursue the higher growth strategy that commenced at the end of Q3 2024 with an increased headcount in sales, support and development. This funding is expected to support the business through to the end of 2026.”
nQ Zebraworks CEO, Bill Bice, added, “This additional investment in nQ Zebraworks will allow us to pursue the market opportunities for BillingQ that we have been building towards. It is an exciting time to lead the business as we look to capitalise on years of development effort and drive exponential sales growth in the near term.”
