Softbinator Technologies raised 6 million lei from investors through a private placement brokered by TradeVille and assisted by Cornerstone Communications

Softbinator Technologies raised 6 million lei from investors through a private placement brokered by TradeVille and assisted by Cornerstone Communications

Bucharest, 29 septembrie 2021 – Softbinator Technologies (ticker symbol CODE), a Romanian software development company, specialized in the design, development, and launch of innovative products with local and international clients, announces the successful closing of the private placement for its shares and raised 6 million lei from the investors of the Bucharest Stock Exchange. The company’s shares will be listed on the AeRO market of the Bucharest Stock Exchange before yearend. TradeVille brokered the private placement, while Cornerstone Communications assisted the company as an Authorized Advisor. Softbinator Technologies in-house lawyers Andrada Damian and Dan Pașală handled the legal implications of the process.

We thank the investors for their trust in our company, and we welcome them to the Softbinator Technologies team. With the capital raised today, we will continue to grow fast, and we are confident that we will become a major player in the global software development services market. Approximately 95% of our revenues come from contracts with companies outside Romania, mainly the USA and Israel. Thus, to achieve the growth objectives, in the next period we are considering opening business development offices in the two mentioned countries. At the same time, we look closely at potential M&A transactions in the Romanian market. We want our access to the capital market to be a differentiator in the local software development landscape. This will give us the chance to raise capital to take majority holdings in other companies or even carry out M&A operations where we will pay with Softbinator Technologies shares, as long as our valuation indicators are significantly better than those of the acquired companies. At the level of services and products provided, we will launch soon two new service lines, Smart Contract Audits and DevOps Legacy App Migrations, as well as our first brand product, Softbinator Magic Stack,” stated Daniel Ilinca, founder and CEO of Softbinator Technologies.

Softbinator Technologies specializes in the design, development, and launch of innovative products with clients in the U.S., Europe (UK, Germany, Romania), the Middle East (Israel, Kuwait), and Asia (Singapore). The company currently has approximately 100 employees and collaborators who carry out their activity in the headquarters in Bucharest and Constanța. Softbinator Technologies provides solutions and services for start-ups, unicorns, and Fortune 500 clients, along with which they build adaptable, multidisciplinary, flexible teams that adhere to the agile programming development methodology. The organization’s profile is oriented towards product development, the team members being appreciated for the ability to deliver fast results.

During the private placement, which began on September 28th, a total of 100,000 shares, respectively 10% of the company’s share capital, were offered to investors at a price between 50 and 60 lei per share. 143 individual and professional investors participated in the private placement. On the first day, the offer closed in advance amid an oversubscription of almost eight times, investors placing orders totalling over 49 million lei. The final price per share was established at 60 lei, the maximum value.

In the current whirlwind of listings, capital increases, and other increasingly attractive opportunities, it is easy to forget that 7-8 years ago, stock market financing in Romania was something that seemed to be forgotten. Then, in 2015, the debut of the first success story that captured the imagination of investors and rewrote the history of our capital market: Bittnet Systems, came to the public’s attention. The promotion of this company on the main market continues to inspire more and more entrepreneurs. Moreover, Bittnet is putting its capital to work to support this new generation of issuers. One of them is Softbinator, a company that closed a successful private placement with TradeVille and is quickly moving towards listing on the AeRO market. It is only the first step, we hope, towards many extraordinary things in the future (including, why not, access to the main market). We thank the investors, the Softbinator team for their trust, but also their mentors and minority investors from Bittnet and we hope to be able to drink a glass of champagne together immediately after the listing,” stated Ovidiu-George Dumitrescu, CFA, Deputy Director within TradeVille, the broker that brokered the Softbinator Technologies private placement.

Before the private placement, to give the team members and collaborators a chance to be part of the company’s shareholding and its activity as a listed company, the principal shareholders, Daniel Ilinca, Simple Capital, and Bittnet Group, sold 59,530 shares to 35 individuals – employees and collaborators of the group and three legal entities, of which two investment vehicles from the Impetum Group, respectively from the Autonom Group. The transfer of shares was made at the maximum price from the private placement, 60 lei.

Thus, following the private placement, the shareholding structure of the company is as follows: Daniel Ilinca, founder and CEO, holds 46.26% of the company, Bittnet Systems 18.99% of shares, the management team consisting of Alexandru Dianu (COO), Marius Baisan ( CTO) and Andreea Popa (CFO) owns 10.8%, Simple Capital, an investment vehicle of renowned investor in IT, Andrei Pitiș, holds 8.09%, to which are added the other two investment vehicles, from the Impetum Group – with a holding of 1.5%, respectively from the Autonom Group – 0.67%, as well as the 35 individuals, employees and collaborators of the group with a total of 3.65%, while BVB investors hold 10% of shares.

We are happy with the successful closing of the private placement and the journey that Softbinator Technologies will soon begin on the Bucharest Stock Exchange. The capital market offers unique development opportunity for IT companies, and it is exciting that we see more entrepreneurs appealing to equity financing. The private placement for CODE shares provided a good balance between matching the company’s needs in terms of access to capital for development and giving investors an attractive multiple for a high growth potential company, with a proven track record and ambitious development plans,” stated Zuzanna Kurek, founder of Cornerstone Communications, Authorized Advisor of Softbinator Technologies.

From the 6 million lei raised as a result of the private placement and from its equity, until the end of 2022, the company will allocate 2.5 million lei for the opening of business development offices in the USA and Israel, 3 million lei will be used for acquisitions of other companies (M&A) with similar specific activity in Romania, 1.5 million lei will be used for the launch of two new service lines – Smart Contracts Audits and DevOps Legacy App Migration, and another 1.5 million lei for the launch and promotion of Softbinator Magic Stack (SMS), the first 100% product of Softbinator.

In 2020, Softbinator Technologies recorded a turnover of 12.3 million lei and a net profit of 2.6 million lei. In the first half of 2021, the company registered sales of 7.78 million lei, + 43% compared to the same period last year, and a net profit of 1.39 million lei, + 18%. Softbinator Technologies estimates revenues of 16.2 million lei and a profit of 3.4 million lei for 2021. Softbinator Technologies targets to grow at Compound Annual Growth Rate in the next four years of 70%.



About Softbinator Technologies

Softbinator Technologies, a Romanian company with accelerated growth in recent years (doubling the numbers between 2017 – 2020), provides software development services using cutting-edge technologies with a strong focus on Blockchain, Artificial Intelligence, and DevOps. The company’s services and products are used globally by startups, SMEs, unicorns, and Fortune 500 customers, with whom they built versatile teams, which respect the Agile methodology. The organization’s profile is oriented towards product development, which is appreciated for its ability to deliver results quickly. Currently, Softbinator Technologies has over 100 programmers and collaborators in Bucharest and Constanța.

About TradeVille

TradeVille is a broker with over 26 years of experience on the Romanian capital market and offers retail clients easy and fast access to financial instruments listed on the Bucharest Stock Exchange and major international stock exchanges. In 2020, TradeVille brokered more than 50% of its primary private placement sales of corporate shares and bonds, with a 100% success rate, for companies in various industries. In 2021, TradeVille received the most trophies from the Bucharest Stock Exchange at the stock market performance award ceremony: The 2020 participant in the retail segment and the Intermediary of entrepreneurial companies at BVB in the 2020 bond segment.

About Cornerstone Communications

Cornerstone Communications is a boutique firm based in Bucharest, specialized in investor relations and capital market advisory. The company provides integrated communication and advisory services to companies that are already listed on the Bucharest Stock Exchange, as well as to entrepreneurial businesses that want to raise financing through the Romanian capital market. Cornerstone Communications is also an Authorized Advisor for BVB’s AeRO market.

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