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Analyst Comment

MapsPeople: Directed issue of new shares in a DKK 10m private placement and a new loan facility of DKK 10m

By Kasper LihnHead of Research
MapsPeople

Today, MapsPeople has announced a DKK 10m private placement and directed issue of new shares and a new loan facility of DKK 10m, corresponding to total gross proceeds of DKK 20m.

New shares will be issued to BankInvest Select Small Cap Danske Aktier KL and Vækstfonden at a subscription price of DKK 4.09 per new share, which is slightly above yesterday’s closing price of DKK 3.85. Settlement and payment against delivery of the new shares as well as registration of the new shares with the Danish Financial Authority are expected to take place on 22 February 2023. The merger of the temporary ISIN code and the permanent ISIN code is expected to take place on 27 February 2023.

The new loan facility of DKK 10m is with Vækstfonden as the lender, and the loan will be paid out in 2 installments based on MapsPeople’s cARR performance. The loan is expected to be fully repaid in 7 years.

MapsPeople expects to report its 2022 annual report on 24 March 2023. The company has already announced that 2022 closed with an ARR of DKK 33.6m and a cARR of DKK 70.1m, and MapsPeople has also announced its 2023 guidance. By the end of 2023, ARR is expected to reach DKK 77-87m (growth between 129% and 159%) and cARR is expected to reach DKK 105-115m (growth between 50% and 64%).

With MapsPeople’s high expected growth rates, the gross proceeds of DKK 20m are important to ensure that MapsPeople can deliver on the expectations for 2023. Thus, the total net proceeds are expected to be used for continuous growth and business development.

Under the current macroeconomic conditions, it is also important that MapsPeople’s cost base has been adjusted, and the company now projects positive cash flow from operations during Q4 2023.

In today’s announcement, MapsPeople also states that the core focus for 2023 will be to ensure faster integration of direct customer venues and other initiatives that ensure a faster conversion of contracted framework agreements with partners into subscriptions. To reach a faster conversion and deliver faster map updates, this also implies that MapsPeople continues its focus on automation and machine learning capabilities.

Reach the full announcement here: https://view.news.eu.nasdaq.com/view?id=b8b5b786a42c38cdf38d252edb5556b83&lang=en

HC Andersen Capital receives payment from MapsPeople for a Corporate Visibility/Digital IR subscription agreement. /Kasper Lihn 13:47, 17 February 2023.

MapsPeople is a Software-as-a-Service (SaaS) company focusing on digital mapping for indoor navigation. The two primary revenue streams are 1) MapsIndoors which is MapsPeople’s own developed mapping solution for indoor navigation 2) Google Maps partnership with Google. MapsIndoors is the key segment with high double-digit growth rates, and the Google Maps segment is expected to be a more steady business going forward. MapsPeople has a global presence with offices in Denmark, Germany, Singapore and United States, and customers include some of the largest brands in the world. The company has been listed at Nasdaq First North Premier in Denmark since June 2021.

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