Touch… Pause… Capital raise!
It’s about a month before the NRL and AFL grand finals kick (or bounce) off and concussion mouthguard tech outfit HitIQ thinks the time is right for its own big game of sorts.
Street Talk understands the three-year old start-up has pressed go on a $5 million pre-IPO capital raising, in advance of a run at the local bourse in 2021.
The company – which sells “smart mouthguards” with sensors that collect data from a players mouth to feed back to training and medical staff – has tapped ex-Morgans operative Michael Johnston’s Grevillea Capital to assist with the funding round.
The data collected by HitIQ’s mouthguards is designed to help training staff rehabilitate players after concussion related injuries.
It is understood the pre-IPO raising comes as HitIQ engages in discussions with the NRL and AFL about packaging up its products and selling them on a subscription basis to the two leagues.
However, HitIQ’s main pitch to potential investors in the pre-IPO raising is around its opportunities offshore, particularly in the United States.
Funds were told that HitIQ was working with New York-listed tech outfit L3 Harris Inc to further develop its concussion analysis software and that it was partnering up with mixed martial arts competition UFC and some US colleges to work on their concussion management programs.
HitIQ said there was a $US500 million opportunity in front of it and its goal was to be the main player in the space within the next half decade.
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Sarah Thompson has co-edited Street Talk since 2009, specialising in private equity, investment banking, M&A and equity capital markets stories. Prior to that, she spent 10 years in London as a markets and M&A reporter at Bloomberg and Dow Jones. Email Sarah at email@example.com
Anthony Macdonald co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets. He has 10 years’ experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at firstname.lastname@example.org