HearMeOut, a voice-based social network company, today announced that it had raised 6.5 million Australian dollars ($5 million) in its IPO on the Australian Stock Exchange (ASX). The company, dubbed the "Twitter of Voice" said that both investment institutions and private investors took part. The IPO, which was held at $0.20 per share, was oversubscribed. The RM Corporate Finance and Prosperion Wealth Management brokerages led the offering, with advice from Amit, Pollak, Matalon & Co. law firm senior partner Ian Rostowsky.
Cooperation with Ford
HearMeOut is an Israeli startup that has developed a revolutionary voice-based social network app that changes the way people consume and upload content on social networks. The platform enables users to hear and record short voice posts (up to 42 seconds) through the app, and to share them through other social networks (such as Facebook and Twitter). The company's app has been adapted to the systems in Ford Motor's vehicles. In order to use it, users must download the app to their mobile device and be connected to the car multimedia system. After the connection is made, the app will appear on the system.
Following its IPO, HearMeOut said, "The money raised will be used to create more cooperative efforts with auto companies for the app, the official US launch, further research and development, and creating additional business opportunities." The company added that after the financing round, it had all the financial resources needed to continue development with Ford.
HearMeOut CEO and managing director Moran Chamsi said, "We are delighted with the success of the financing round and the IPO, which are significant events in the history of any company. The money raised will enable us to make progress in business development and marketing the app to more substantial markets, and to be the leader in the category." Chamsi also said, "Our cooperation with Ford, our first commercial agreement, is a significant milestone for the company."
HearMeOut is one of several Israeli companies, mostly small ones, in the pre-sales stage, to which the ASX is reaching out, usually allowing them to raise several million Australian dollars. 10 Israeli technology companies are already listed on the ASX, and this number is projected to grow to 20-30 companies within a year.
Other companies in line to hold ASX IPOs in the near future include Dragontail Systems, owned by Pizza Hut Israel owner Yehuda (Udi) Shamai. Dragontail, which has developed delivery and food management software, wants to raise six million Australian dollars. The ASX, located in Sydney, is regarded as globally important, being among the world's 10 leading stock exchanges in size, with many shares listed and high trading volumes.
Published by Globes [online], Israel business news - www.globes-online.com - on December 6, 2016
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