Outdoor company XTD completes $3m float
Australian-based outdoor advertising company XTD has completed a $3m initial public offering.
The release:
The Directors of XTD Limited are pleased to advise that the Prospectus Offer dated 4 November, 2014 has been fully subscribed at $3,000,000.
Australian—based XTD offers the world’s first, designed for rail, cross-track video system that uses billboard-size LED television screens accompanied by high definition sound to broadcast advertising and information to train commuters. The system operates in both underground and above ground locations.
The Company won a seven-year contract from Metro Trains Melbourne Pty Ltd (MTM) to install and operate 32 XTD digital screens within three of Melbourne’s busiest rail stations. The system was installed on time, within budget and was fully operational from 15 October, 2014. Next month XTD will commence the installation of a further 15 screens into the Brisbane City metro rail network under an exclusive contract with QR Rail for up to seven years. The Company is fully funded to roll out the Brisbane system which will operate from mid-April next year.
In Melbourne APN Outdoor has been appointed as exclusive sales agent for an initial period of 12 months.
XTD Chief Executive Officer Steve Wildisen said it was very pleasing to successfully close the IPO and that he looked forward to the Company listing on the ASX on or around 18 December, 2014.
“The Melbourne system has been operating cash-flow positive from day one of launching and some great brand names have signed up including Google, News Corp, American Express, Pay Pal and Bank of Melbourne,” said Wildisen.
“It is common knowledge in the marketing industry that consumer engagement with Outdoor and Television is very high among media channels,” said Wildisen. “The XTD system brings TV and Outdoor together in a commuter rail environment where audiences are captive as they wait for their trains.”
Wildisen said that he and senior members of the XTD commercial team had just returned from the USA where they met with some of the largest outdoor advertising groups, technology companies and media buyers. The Company is focusing on the USA into 2015 as a key market for the system.
“Digital out-of-home advertising is a rapidly growing sector of advertising in the USA and we see a huge growth opportunity when entering that market,” Mr Wildisen said.
Following the close of the Offer the Company will now work with ASX to satisfy the listing requirements under Chapters 1 and 2 of the ASX Listing Rules to achieve reinstatement ahead of 18 December, 2014.
Source: RMG press release
