Ottawa-based Martello Technologies has closed $4.6 million after a public offering on the TSX Venture Exchange.
The funding was raised through an overnight marketing public offering, which, according to the Ottawa Business Journal, reduces investors’ attempts to short stocks. Investors of overnight offerings agree to buy the stock at market price levels before other investors learn of the deal.
“Our investors understand the significance of Martello’s opportunity, as real-time services place increasing pressure on network performance.”
– Terry Matthews
Martello manages and optimizes the performance of real-time services on cloud and enterprise networks. Designed for real-time communications such as voice and video, Martello’s solutions detect, identify, and address network performance problems before service quality is impacted.
The company plans to use the funding to identify and fund acquisitions, accelerate R&D activities, increase sales capacity, and for general corporate purposes. In December 2017, Martello acquired SD-WAN player Elfiq Networks, which built bandwidth management technologies.
In April 2018, Martello Technologies went public through a reverse takeover on the Toronto Stock Exchange, entering into an agreement with Vancouver’s Newcastle Energy Corporation to complete a reverse takeover transaction. In June 2018, the company completed a $7.5 million private placement.
“Access to public capital is an excellent growth vehicle for companies such as Martello,” Martello co-chair Terry Matthews said at the time of its private placement. “This step towards a public listing exposes Martello to global investors who are attracted to the thriving Canadian technology sector.”
In December 2018, Martello was among the seven companies in the first cohort of a joint accelerator between L-SPARK and BlackBerry QNX. In the cohort, BlackBerry said it would help companies research and develop product prototypes in robotics, device security, sensor fusion, while startups completed a demo day at the end of the program.
“Our investors understand the significance of Martello’s opportunity, as real-time services place increasing pressure on network performance,” John Proctor, CEO at Martello, said when the company raised its $7.5 million private placement. “We’re gratified by the confidence placed in us by new investors in this placement, but also by existing shareholders that joined us once again.”