AUCloud has announced it will commence a AU$35 million capital raising, which will comprise NextDC taking up approximately a 20% stake in the company as the former eyes plans for national expansion.
AUCloud said in a statement that it will raise the total by issuing new shares at AU$0.50 per share, which will also include a placement to NextDC of approximately AU$12.4 million.
According to AUCloud, the funding will largely be used to scale the company to “critical mass”.
“We continue to see a trend towards greater emphasis on sovereign cloud services to ensure all data remains within Australian legal jurisdictions,” AUCloud CEO and managing director Phil Dawson said.
“Our strategic partnership with NEXTDC, a leading provider of premium data centre facilities, will provide access to a powerful national network of 1,500+ enterprise customers and 730+ channel partners.
“This equity raising capitalises AUCloud to extend its platform footprint into Brisbane, Melbourne, and Adelaide, and expand its customer reach into the large security-conscious enterprise market.”
NextDC will also be entitled to a place on the AUCloud board, which will initially be NextDC CEO and managing director Craig Scroogie.
“NextDC has an in-depth understanding of the underlying cloud market dynamics gained through our
