Pre Money Equity Valuation
$18,049,412
Min Raise
$6,500,000
Max Raise
$7,000,000
Estimated Close
2019-03-06
Issue Type
IPO
Lead Manager
No Lead Manager
Type of Securities
Shares
Date First Lodged
18/09/2018
Offer Costs $
$1,135,927
Market Cap Max
$25,049,412
Key Executives
Nick Brookes (NEC), David Grey (MD and CEO), Ivan Colak (ED), Alan Beasley (NED), Brendan Dickson (NED)
Company Address
Level 11, 52 Phillip Street Sydney NSW 2000
Stockbroker's Snapshot
Asset processing software provider
Exchange
ASX
Chairman's Letter

Dear Investors,

On behalf of the Board of Directors, I am pleased to invite you to become a Shareholder of AXS Group Limited (RCA 619 705 207)
(“Company” or AXS). The Company is an Australian public company incorporated on 13 June 2017 for the purposes of purchasing and growing Axcess Consulting Group Pty Limited (A.C.N. 109 358 689) (“Axcess Consulting”). The Company has entered into Share Purchase Agreements (“SPAs”) with the shareholders of Axcess Consulting. On Completion of the Offer, AXS will complete the acquisition of all the equity interests in Axcess Consulting under the SPAs and will become the ultimate holding company of Axcess Consulting.

Axcess Consulting is an integrated software solution provider to the finance, insurance and funds sectors and provides disruptive technology software for clients globally to help them gain their own digital workforce. Axcess Consulting provides its clients with a digital transformation through its internally developed software platform, ARMnet. The ARMnet software platform uses cognitive processes, including robotic process automation and blockchain techniques to give real time output, reducing time and cutting costs. In bringing AXS and Axcess Consulting together (“Group”), we see a greater correlation of skills and opportunities in finance, property, superannuation and insurance sectors that remain untapped for disruption in automation.

Globally, total Information Technology (“IT”) expenditure is projected to total US$3.7 trillion in 2018, an increase of 4.5% from 2017. Corporate business software use continues to exhibit strong growth, with worldwide software spending projected to grow 9.5% in 2018, and it will grow another 8.4% in 2019 to total USS421 billion. Organisations are expected to increase spending on software in 2018, with more of the budget shifting to software as a service (“SaaS”). The growing availability of SaaS-based solutions encouraging new adoption and spending across many subcategories, such as financial management systems (“FMS”), human capital management (“HCM”) and analytic applications.

Technological advances continue to develop in the back office which offers the financial services industry the ability to do things more efficiently and more effectively, The Company is to be a key driver in this market and operates two main business lines from its ARMnet technology platform:

Platform Product Solutions: provides straight through processing solutions for the initiationn, management and exit of any asset class utilising automated features that reduce manual handling and delays; and

Service Solutions: provides disruptive IT solutions to combine and integrate a client’s existing incompatible inharmonious software solutions to produce one output system

The Group offers the ability to generate predictable revenue streams based on ongoing contracts with clients for the supply of its product and service solutions. Axcess Consulting has a strong competitive position and track record of providing outsourcing services and has significant interest from prospective global clients requiring back office technology solutions, with more major clients looking to come on board.

Beyond its Australian operations, Axcess Consulting competes against major systems, applications and product providers to grow clients offshore, further diversifying Axcess Consulting’s revenue sources. Axcess Consulting has seen strong growth since its inception in both its domestic and global client bases.

The Group intends to continue to grow organically as well as consider potential further acquisitions. The proceeds raised in connection with this
Offer will be used to complete a payment to the Vendors (as outlined in Section 9.4.1) and to hold sufficient working capital and cover all costs
for the Listing.

The Offer will raise up to $7.0 million upon Completion of the Offer. A number of Shareholders holding 63,264,315 Shares Completion of the Offer will be under escrow arrangements for up to 24 months from the Listing Date. These persons include Related Parties, Promoters and other persons that the ASX requires to be restricted from selling their Shares. The Axcess Consulting Shareholders will also be under escrow for 100% of their consideration Shares for 24 months from the Listing Date. The total escrowed shares represent 63.14% of the Company’s issued capital at the Listing (if the Maximum Subscription is reached). Please refer to Section 9.6 for further details.

The public listing of AXS will be a significant milestone in the Group’s development. The Listing provides the Company a unique opportunity to sincerely welcome those investors who share our vison by becoming the first group of public Shareholders of this promising company.

This Prospectus contains detailed information about the Offer, the industry in which the Group operates and its financial and operating performance. The Company is subject to a range of risks which are fully detailed in Section 8, including but not limited to failure to meet agreed service levels or retain key clients, risks related to operating a business reliant on operational processes and technology in a highly regulated environment. I encourage you to read this document carefully and in its entirety before making your investment decision.

On behalf of the Directors, I invite you to subscribe for Shares in the Company and I look forward to welcoming you as a Shareholder.

Yours sincerely

Nick Brookes

Chairman