Datalex, the retail software provider to airlines, said on Thursday it plans to raise €25 million in the “early autumn” as it seeks to repay high-cost loans from its main investor, Dermot Desmond, and secure working capital to invest in growing the business.
Mr Desmond’s Tireragh Limited vehicle had €13 million loans outstanding at Datalex at the end of last year. The debt carries an 18 per cent interest rate and some €1.9 million of interest was owed at that stage.
Datalex’s chairman David Hargaden said ahead of the groups annual general meeting on Thursday that it is the board’s intention to launch a €25 million equity fundraising in the early autumn.
“The potential fundraising, if completed, is expected to enable the group to repay in entirety its existing loan facility with Tireragh Limited and provide sufficient working capital to invest further in the group’s product roadmap and activation projects, while continuing to compete for new revenue opportunities,” he said.
Datalex confirmed in its annual report last month that its revenues grew by 23 per cent last year to $29.8 million (€27.8 million), while its losses before interest, tax, depreciation and amortisation narrowed to $2.9 million from a $5.3 million shortfall for 2022.
Mr Desmond also gave the company breathing room to raise equity later this year by offering to extend the term of his loans by six months to July 1st, 2025. He also agreed to provide a new €10 million facility, if needed, should the equity raise not be completed.
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