Aumake (ASX:AUK) uses its platform to connect Asian influencers with “high-quality and authentic Australian and New Zealand brands”.
Announcing the success of the capital raising, Aumake said it has secured binding commitments of $7 million (before costs) via a placement of 116,666,667 new shares at $0.06 per share and inclusive of a 1:2 free attaching option to new and existing institutional and sophisticated investors.
Aumake says tranche 1 of the Placement, (101,750,000 shares), will be issued during the week commencing 28 December 2020, with Tranche 2, (14,916,667 shares including the directors’ commitments, to be issued subject to shareholder approval.
Aumake announced that the placement was led by a “cornerstone investment” by Steven Hu and co-investors.
Hu is a former partner of a large Hong Kong-based venture capital firm and is based in Shenzhen, ddescribed by Aumake as the “epicenter of consumer technology development in China”.
Aumake Executive Chairman, Keong Chan, commented, “The strong support we have received from new and existing investors reflects the significant long-term growth opportunities our social e-commerce platform provides for the business. We welcome our new shareholders to the register, in particular cornerstone investor Steven Hu.”
“Steven initially approached us in early October when we outlined our intention to develop a social e-commerce marketplace for the Australian and New Zealand market. Given his firsthand investment experience with the rapid evolution of consumer technology in China, Steven saw the significant potential for our business to grow exponentially with this new business model. I’m delighted he has joined Aumake’s register and we look forward to leveraging his extensive network of co-investors and operators within the consumer technology field in China.”
“This Placement will enable us to fast-track marketing and growth initiatives, with plans to drive substantial user uptake and sales growth, as well as continued technology buildout. Key technology developments will focus on popular social e-commerce functionalities, such as short form video, gamification, and group buying capabilities.
“While our new social e-commerce platform is already generating strong active new user growth and repeat purchasing, the Placement supports our commercial rollout including marketing activities which will significantly increase our platform’s visibility in mainland China. It also enables us to invest in direct marketing campaigns for new brands and the introduction of profit-sharing models to drive influencer interaction and sales conversion.
“We believe Aumake is well positioned to emulate the social e-commerce business model of Pinduoduo Inc (NASDAQ: PDD, market cap US$183B USD), connecting high-quality for Australian and New Zealand brands with Asian influencers.”
Keong Chan said that in preparation for the return of international students and tourists, Aumake is opening a Town Hall concept store in Sydney to facilitate “repeat purchasing and the cost-effective conversion of physical traffic to our online platform”.
“We continue to look forward, and firmly believe China with its 1.4 billion population and ~$140b of annual trade with Australia, will continue to rely heavily on the clean, green products that Australia and New Zealand produce.”
