- 01FCT raises $1.06m via placement at $0.007.
- 02Funds to convert $16.5m pipeline.
- 03Open-AudIT7 and AI fault diag launch.
- 04FY26: loss -80% to $2.81m; 95.3% margin.
FirstWave Cloud Technology (ASX: FCT) has secured firm commitments for a $1.06 million placement to fund working capital as it targets conversion of a $16.5m open sales pipeline and prepares new software products for market.
The placement, which will see approximately 151 million new shares issued at $0.007 each—matching FirstWave’s closing price on 29 September—attracted support from existing and new sophisticated and professional investors.
Proceeds will support the October release of Open-AudIT 7 and the launch of an AI-driven network fault diagnosis system, alongside continued growth in the group’s core network monitoring operations and Latin America interests.
The raising follows FY26 results in which FirstWave cut its statutory loss by 80% to $2.81m, remained operating cash flow positive for a second consecutive year, and lifted gross margin to 95.3%.
FirstWave finished FY26 with $1.33m in cash, up from $0.26m, after operating cash inflows of $1.40m in the third quarter and $0.605m in the fourth quarter.
Extensive Sales Pipeline
FirstWave’s gross unweighted open pipeline stood at $16.5m across 128 opportunities at 4 September (excluding renewals), with $13.9m across 107 deals dated to close during FY27.
The pipeline includes $7.1m of opportunities in Latin America and $1.7m across 39 Open-AudIT opportunities, while $8.5m across 34 deals had progressed to proposal stage or beyond.
“This placement gives us the working capital to convert our pipeline, grow recurring software revenue, and monetise our substantial global installed user base as we bring Open-AudIT 7 and our AI-driven fault diagnosis system to market,” chief executive officer Danny Maher said.
“We are pleased with the confidence our investors have shown in supporting the placement at the listed market price, and we are very appreciative of the support of Bell Potter and Partners for Growth through this process.”
Bell Potter Securities acted as sole lead manager and bookrunner, while secured lender Partners for Growth consented to the placement.
Platform Growth Turnaround
Network monitoring revenue grew 32% in FY26 to $6.83m and represented 82% of group revenue, while Latin American revenue increased 66% to $2.15m and second-half revenue finished 20% above the first half.
The business recorded $5.54m of annual recurring revenue at 31 August, supported by subscription software carrying a 95.3% FY26 gross margin, while prepaid contract revenue stood at $2.91m at 30 June.
FirstWave has budgeted an annual operating cost run rate of $8.1m from October 2026, 45% below its $14.8m operating cost base in the year ended June 2024, following restructuring that reduced headcount and lowered monthly operating costs.
More than 20,000 organisations have upgraded to Open-AudIT 6, while the next generation adds automatic 30-day Enterprise trials and credential-free discovery reaching internet of things, medical and industrial devices.
The AI fault diagnosis product is being prepared for commercial launch after FirstWave filed a provisional patent application in September for a system designed to automate explainable root-cause diagnosis using network data already collected by its software.
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