{"id":45797,"date":"2023-10-20T15:46:27","date_gmt":"2023-10-20T15:46:27","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/melbourne-startup-ccp-plans-10-million-ipo-and-backdoor-asx-listing-just-before-rule-changes-it-will-quite-possibly-be-the-last-one-startupsmart\/"},"modified":"2023-10-20T15:46:27","modified_gmt":"2023-10-20T15:46:27","slug":"melbourne-startup-ccp-plans-10-million-ipo-and-backdoor-asx-listing-just-before-rule-changes-it-will-quite-possibly-be-the-last-one-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/melbourne-startup-ccp-plans-10-million-ipo-and-backdoor-asx-listing-just-before-rule-changes-it-will-quite-possibly-be-the-last-one-startupsmart\/","title":{"rendered":"Melbourne startup CCP plans $10 million IPO and backdoor ASX listing just before rule changes: “It will quite possibly be the last one” – StartupSmart"},"content":{"rendered":"
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Melbourne-based Internet of Things firms CCP has announced plans to raise $3 million through an IPO in what could be the last backdoor listing on the ASX before new rules are put in place to block out early-stage startups with little revenue.<\/p>\n

CCP offers critical control point monitoring to cafes, hospitals, supermarkets and other venues. The startup\u2019s hardware and software service alerts clients when temperatures, energy or other environmental factors are approaching a point when a failure of standard operating procedure would result in possible harm to people or the business.<\/p>\n

The tech firm is now plotting a backdoor listing on the ASX after announcing plans to be acquired by listed shell company Agenix Limited and raise $3 million through an IPO.<\/p>\n

The last of its kind?<\/h3>\n

With the ASX set to implement new financial thresholds to prevent very early-stage companies that aren\u2019t generating revenue from going public,<\/a> the startup\u2019s reverse listing could be the last of its kind in Australia, CCP chief operating officer Anthony Rowley says.<\/p>\n

\u201cThe timeframe means we just snuck in under the old listing rules, and it\u2019s fair to say it will quite possibly be the last one,\u201d Rowley tells StartupSmart<\/em>.<\/p>\n

\u201cWe never set out to become a public company in the process of raising capital \u2013 it\u2019s something we fell into.\u201d<\/p>\n

Rowley says he was set to close a round of private funding last year just as the federal government unveiled its innovation statement and accompanying startup investing tax incentives.<\/p>\n

\u201cUnfortunately at that time the innovation statement came out and all of the high net-worth individuals we were talking to decided that they wanted to wait for the tax incentives that would commence on the first of July 2016,\u201d he says.<\/p>\n

\u201cSo we were faced with a dilemma.\u201d<\/p>\n

The entrepreneur found a solution when he met with Agenix, a 30-year-old publicly listed shell company.<\/p>\n

\u201cWe worked with them and subsequently reached an agreement that provided us with working capital sufficient to get us through the process of listing,\u201d Rowley says.<\/p>\n

\u201cIt has been a lot of work \u2013 there has been intense scrutiny of our business, IP, patent and the trials we are conducting, and Agenix spent a lot of time making sure this was the right deal for them.\u201d<\/p>\n

The virtues of going public<\/h3>\n

Through the listing, CCP plans to float 60 million shares at 5 cents each in order to raise $3 million, valuing the company at more than $10 million.<\/p>\n

Rowley says that CCP is now embracing the idea of becoming a publicly-listed company.<\/p>\n

\u201cIt took us a while to really recognise the true benefit of that,\u201d he says.<\/p>\n

\u201cIt\u2019s always an exit strategy for most startups \u2013 it\u2019s a long-term goal to do a listing. But for us it was quite a process to get our minds around it and recognise that the ASX is a great source of funding to help startups and particularly to really turbo-charge growth over a longer period of time.<\/p>\n

\u201cOnce we were clear on that we were absolutely committed to this process and shaping our business to prepare for growth with a clear target of being a $100 million company in three years\u2019 time.<\/p>\n

The cash injection will be invested in business development across Australia, North America and Europe, Rowley says.<\/p>\n

\u201cOur technology is developed and it\u2019s operational,\u201d he says.<\/p>\n

\u201cIt\u2019s not a concept; it\u2019s a stable, proven platform. This is now about focusing on growing our enterprise sales and our small and medium market share.\u201d<\/p>\n

Closing the door<\/h3>\n

Under the ASX\u2019s proposed rule changes, the backdoor listing would be blocked by the market. According to the prospectus, CCP recorded revenue of just over $35000 for the six months ending on December 31 and a corresponding loss of more than $550,000, while Agenix posted cash balance of more than $685,000 at the end of 2015.<\/p>\n

While sympathising with the ASX\u2019s positon, Rowley says that it\u2019s disappointing that other early-stage tech ventures will be blocked from going public.<\/p>\n

\u201cThey\u2019re a commercial entity and to a certain degree their move indicates they want to tidy up a lot of the shells that exist on the ASX and make it a lot harder to use those shells for backdoor listings,\u201d he says.<\/p>\n

\u201cWith the bar raised it\u2019ll stop a lot of early-stage companies from using the ASX. I don\u2019t know if that\u2019s consistent with the government\u2019s policies and what Malcolm Turnbull has said.<\/p>\n

\u201cIt\u2019s disappointing that it closes the door effectively for startups to use this in the future.\u201d<\/p>\n

Follow StartupSmart on<\/em> Facebook,<\/em> Twitter, <\/em>LinkedIn <\/em>and <\/em>SoundCloud.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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