Equity raising presentation

• Bigtincan Holdings Limited is undertaking a $20.5 million equity raising through an underwritten accelerated non-renounceable entitlement offer.
• The funds will be used to invest in core AI technology, data infrastructure for GenieAI, market awareness, and working capital.
• The offer price is $0.10 per new share, representing a 28.6% discount to the last traded price on June 5, 2024.
• The company has agreed to roll over its AU$15 million existing loan facility with Regal Funds Management Pty Limited.
• Bigtincan received a non-binding indicative offer from Vector Capital Management, L.P. at $0.25 per share, which the board is considering.
• The company reaffirms its FY24 outlook, projecting revenue of $120m+, EBITDA of $10m+ (Adjusted EBITDA $15m+), and free cash flow in 2H FY24 of $5m+.
• Tim Ebbeck has been appointed to the Board of Directors.

Score: 6

Explanation: The announcement is mixed. The equity raising and potential acquisition offer are positive, but the discounted offer price and inherent risks temper the overall sentiment.

• The equity raising will fund investments in core AI technology and data infrastructure, supporting future growth.
• Extension of the existing loan facility provides financial stability.
• The indicative offer from Vector Capital Management could potentially maximize shareholder value.
• Appointment of Tim Ebbeck to the Board brings extensive experience in enterprise software.
• GenieAI based products have generated $3m+ in AI influenced deals in Q3 FY24.
• The company projects FY24 revenue of $120m+, EBITDA of $10m+ (Adjusted EBITDA $15m+), and free cash flow in 2H FY24 of $5m+.

• The offer price of $0.10 per share represents a significant discount to the last traded price.
• Bigtincan has been loss making and may be required to raise further capital in the future.
• The indicative offer from Vector Capital Management is non-binding and may not result in a transaction.

• Bigtincan operates in a competitive industry.
• The company faces competition from new entrants.
• Failure to retain existing customers and attract new customers could impact the business.
• Reliance on a single platform poses a risk if the platform is not properly maintained or updated.
• International expansion plans may be inhibited by unforeseen issues.
• Reliance on third-party IT suppliers could be problematic if contracts are terminated or services are disrupted.
• Security breaches and data privacy issues could materially impact the business.
• The company's success depends on attracting and retaining key staff.
• Foreign exchange fluctuations may affect financial results.
• Integration risks are associated with acquisitions.
• Global economic conditions could impact the company's performance.
• Changes in laws and accounting standards may affect the company.
• Termination of the Underwriting Agreement by both Underwriters would have an adverse impact on the total amount of proceeds that could be raised under the Equity Raising.

Bigtincan aims to leverage its GenieAI technology to create the buying experience of the future and will update the market on FY24 at its full year results.

• Bigtincan believes the market timing for growth around GenieAI is core to future growth.
• The IBC will continue to carefully consider any proposals that maximise shareholder value.

Bigtincan operates in the competitive sales enablement software market, where companies like Seismic, Highspot, and Showpad are key players. The focus on AI-driven solutions aligns with the industry trend of leveraging AI to enhance sales processes and customer engagement.

• Bigtincan's focus on AI-driven sales enablement solutions aligns with industry trends seen in companies like Seismic and Highspot, which have also invested heavily in AI capabilities.
• The projected FY24 revenue of $120m+ places Bigtincan in a competitive position compared to smaller players in the sales enablement market, but still significantly smaller than industry leaders like Seismic.
• The equity raising is similar to capital raising activities undertaken by other growth-focused SaaS companies to fund product development and market expansion.

• Shareholders face dilution from the equity raising, but may benefit from future growth and the potential acquisition offer.
• Employees may see increased investment in AI technology and market expansion.
• Customers could benefit from enhanced AI-powered sales enablement solutions.
• Suppliers may see increased demand due to the company's growth plans.
• Creditors are impacted by the extension of the loan facility.

• Completion of the Institutional and Retail Entitlement Offers.
• Deployment of capital into core AI technology and data infrastructure.
• Continued consideration of the indicative offer from Vector Capital Management.
• Update the market on FY24 at its full year results.

• June 5, 2024: Last traded price of Bigtincan shares before the announcement of the Entitlement Offer.
• June 6, 2024: Closing price of Bigtincan Shares as traded on ASX on 6 June 2024, being the last trading day prior to the announcement of the Entitlement Offer.
• June 7, 2024: Trading halt after market close.
• June 11, 2024: Announcement of underwritten ANREO and Underwriting Agreement.
• June 12, 2024: Announcement of results of Institutional Entitlement Offer; Trading halt is lifted and trading resumes on an ex-entitlement basis.
• June 13, 2024: Record date for the Entitlement Offer (7:00pm AEST).
• June 18, 2024: Offer Booklet and Entitlement & Acceptance Form issued and Retail Entitlement Offer opens; Settlement of New Shares issued under the Institutional Entitlement Offer.
• June 19, 2024: Allotment and normal trading of New Shares issued under the Institutional Entitlement Offer.
• July 2, 2024: Retail Entitlement Offer closes (5.00pm AEST).
• July 8, 2024: Settlement of Retail Entitlement Offer.
• July 10, 2024: Normal trading of New Shares issued under the Retail Entitlement Offer; Despatch of holding statements in respect of New Shares issued under the Retail Entitlement Offer.