AUSTIN, TX / ACCESSWIRE / August 18, 2023 / Asure Software, Inc. (NASDAQ:ASUR) ("Asure" or "the Company"), a provider of cloud-based Human Capital Management (HCM) software solutions and services, announces the pricing of a public offering following its strong Q2 2023 financial results, which showed record y/y revenue growth of 50% to $30.4 million.
In their release, Asure says they plan on issuing 3,333,333 new common shares of stock for $12.00 per share, which equates to gross proceeds of approximately $40 million. Management says the company plans to utilize the proceeds to accomplish two key tasks:
- Acquire or invest in complementary businesses, assets of technologies; and
- Repaying outstanding debt from its September 2021 Loan and Security Agreement with Structural Capital Investments III, LP, and Ocean II PLO LLC.
Important to note that Asure mentions it does not currently have any definitive agreements to acquire or invest in any business or technology, nor has an official decision been made regarding the repayment of the debt mentioned above.
Asure Chairman & CEO Pat Goepel: "Our continued investments in product development are enabling our small business customers to better leverage our expertise while our enterprise clients access new tools to move money and manage increasingly complex tax laws more effectively. With further adoption of these capabilities, we are driving success in our HR compliance and Asure Marketplace™ offerings. In May, we released a new HR Benchmark Survey and Report that lays out best practices for small businesses, which we believe provides a clear roadmap for growth that our customers can leverage as they look to expand their operations. Going forward, we will continue to provide innovative HCM solutions that help small businesses thrive, HCM providers grow their base, and large enterprises streamline tax compliance."
If Asure decides to move forward with its potential plans for the proceeds of the capital raise, the company would be paying off a high-interest loan, which could provide further benefits to its bottom line. Furthermore, any acquisitions or investments could conceivably help provide further top-line revenue growth for the company over time as well.
In other news, Zacks Investment Research has upgraded Asure stock to a "Rank #1 (Strong Buy)," according to its latest article from August 14, 2023. Here is what Zacks had to say about Asure in its most recent write-up:
"Analysts have become notably bullish regarding its current fiscal year, with the $0.51 per share Zacks Consensus Estimate up 130% since last August…Asure Software has been a consistent earnings performer as of late, exceeding consensus earnings and revenue expectations in each of its last four releases. The growth is slated to continue, with expectations for its current year alluding to a 240% jump in earnings on 24% higher revenues. And looking ahead to FY24, expectations suggest a further 30% earnings growth paired with 8% higher sales."
For more information about the company's services, latest news, and ongoing initiatives, visit https://www.asuresoftware.com and https://spotlightgrowth.com/asure-nasdaq-asur-reports-massive-50-y-y-revenue-growth-during-q2-2023-raises-40-million-to-pay-off-high-interest-debt-and-fund-acquisitions/
About Asure Software
Asure Software (NASDAQ:ASUR) provides cloud-based Human Capital Management (HCM) software solutions that assist organizations of all sizes in streamlining their HCM processes. Asure's suite of HCM solutions includes HR, payroll, time and attendance, benefits administration, and talent management. The company's approach to HR compliance services incorporates AI technology to enhance scalability and efficiency while prioritizing client interactions. For more information, please visit www.asuresoftware.com.
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SOURCE: Asure Software
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