Subjects: ACC, VEN
Capitalizing for a Greener Future: Desert Control's Momentum Strengthened by Successful Funding Round with U.S. Lead Investor and Growing Commercial Traction
SANDNES, Norway, Oct. 2, 2023 /PRNewswire/ -- Desert Control (OSE: DSRT) closed Q3-2023 with an announcement of completing a capital raise of NOK 67.50 Million on 28 September 2023. This achievement follows a recent strategic review that unlocked approx. NOK 40 Million in liquidity combined with reductions in annual operating costs of more than NOK 15 Million. The combined accomplishments secure funding for the company's commercialization phase through to H1-2025, correlating with the anticipated timeline for reaching cashflow-positive operations.
Desert Control reports a strengthened position and positive trajectory as the company nears the end of 2023. Some of the recent highlights include:
Successful Capital Raise with U.S. Lead Investor and Board Expansion:
Signifying the company's strategic focus on the United States, seasoned U.S. investor Woods End Interests LLC, helmed by James Thomas, took a lead investor role in the recent capital round. With James Thomas's anticipated election to the Board of Directors, the move exemplifies a strong belief in Desert Control's vision and strategy, further confirmed by a solid base of existing shareholders participating in the round.
Momentum Building Based on Successful Strategic Review:
Desert Control's strategic review completed in Q2-2023 identified significant efficiencies by transitioning to a licensed operator model for the Middle East, resulting in annual cost reductions of over NOK 15 million and unlocking approx. NOK 40 Million in cash. Combined with the recent capital raise and potential funds from the subsequent offering, the company's total cash influx from these activities is anticipated to reach NOK 110-120 million, fortifying the company's financial position.
Progress in the Middle East Driven by New Go-to-Market Model:
The transition to the licensed operator model is progressing, and the revised Go-to-Market model has set a pathway for streamlined operations and spurred a positive pivot in commercial traction. The regulatory approvals secured in the UAE during July further contribute to opening new opportunities, and our partners are optimistic about a growing sales potential in the coming quarters. In collaboration with our partners, several opportunities are advancing, affirming the positive impact of the recent strategic shift.
Commercial Traction and Consistent Execution in the United States:
The U.S. team continued its consistent execution of the sales strategy and customer conversion model. Five new pilot projects were secured in the third quarter, marking three consecutive quarters of on-target achievement. The pipeline reveals a promising trend, and the company remains confident in continuing to secure a minimum of five new pilots per quarter, targeting a conversion rate of at least 50% to larger projects. The company further maintains its objective of securing the inaugural contract for large-scale deployment around the end of the year.
Outlook:
With a robust financial position secured to support the company's plans through H1-2025, Desert Control is poised to advance its mission. As commercial traction grows in the Middle East and the United States, Desert Control is steadily strengthening its position as a secure and reliable choice for clients, partners, and other stakeholders.
"Raising capital demands significant time and effort. With this milestone achieved, we are excited to channel this energy into what we're most passionate about, namely customers and driving the commercialization, development, and growth of our business", said Ole Kristian Sivertsen, CEO of Desert Control. "Our team is passionate about our mission, and we're ready to accelerate our impact."
CONTACT:
Ole Kristian Sivertsen
President and Group CEO
Email: [email protected]
Mobile (NOR): +47 957 77 777
Mobile (USA): +1 650 643 6136
Mobile (UAE): +971 52 521 7049
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Capitalizing for a Greener Future: Desert Control's Momentum Strengthened by Successful Funding Round with U.S. Lead Investor and Growing Commercial Traction |
SOURCE Desert Control AS
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