FirstWave secures $2.5 million to fund global expansion

ASX-listed software vendor FirstWave has entered into an agreement with Danish asset management and financier Formue Nord A/S to secure $2.5 million in funding.

The agreement involves the issue of convertible notes with a conversion price of 3.6 cents to Formue Nord, which will provide $2.5 million to support FirstWave’s expansion into North and Latin America.

On completion of the transaction, FirstWave will have approximately $5 million in working capital.

“Formue Nord has expressed their desire to be a long-term partner for FirstWave during and beyond the term of the convertible note and we look forward to working with them as we execute our growth strategy," FirstWave's CEO Danny Maher said. 

"The investment provides us with capital to pursue our plans to be a significant player in the global network management and cybersecurity space."

"Our ability to repay the principle early without penalty and all other payments being interest only gives us ultimate flexibility to navigate the facility as we choose - maximising our use of the capital and providing us the opportunity to manage through any unexpected difficulties without default clauses coming in to play."

"Formue Nord has exceptional experience in supporting companies like FirstWave and I am thrilled to be working with them as our newest investment partner.”

Formue Nord is an independent specialised asset manager and capital partner for small and midsized listed companies in the Nordics.

The company manages two investment funds with a focus on technology, biotech and healthcare companies and has completed over 800 investments and finance agreements with partners in the last seven years.

“This is our first investment in an Australian company, and we believe it provides an excellent opportunity to support a company with significant potential for growth if given the right resources," Formue Nord's founding partner and chief investment officer Rasmus Viggers said.

"Our intention is to be a long-term investor and partner for FirstWave, and we look forward to working with Danny and his team.”