Key Highlights

  • Dataworks Group (ASX:DWG) has received firm commitments to raise $3.0 million through a Placement at $0.12 per share, alongside a 1-for-10 entitlement offer to raise up to a further $1.24 million.
  • The combined Capital Raising, if fully subscribed, totals up to approximately $4.24 million before costs.
  • The issue price represents a discount of approximately 20% to the last closing price and approximately 11% to the 15-trading-day Volume weighted average price.
  • Participants will receive one free attaching unlisted option for every two new shares subscribed, exercisable at $0.20 per share and expiring 31 December 2027.

Dataworks Group Limited (ASX:DWG) has announced a capital raising comprising a placement to sophisticated and professional investors and a pro-rata entitlement offer to existing shareholders, together targeting up to approximately $4.24 million before costs to support the company's next stage of growth.

Placement and Entitlement Offer Structure

The company has received firm commitments to raise $3.0 million before costs through a placement of 25,000,000 new fully paid ordinary shares at an issue price of $0.12 per share, to be issued under the company's existing placement capacity under ASX Listing Rules 7.1 and 7.1A. Dataworks will also undertake a 1-for-10 non-renounceable entitlement offer to eligible shareholders at the same issue price, aiming to raise up to approximately $1.24 million based on the company's current issued capital.

The issue price of $0.12 per share represents a discount of approximately 20% to the company's closing share price of $0.15 on 10 September 2026, the last trading day prior to the announcement, and a discount of approximately 11% to the company's 15-trading-day volume weighted average price of $0.135.

Attaching Options

Participants in both the placement and the entitlement offer will be entitled to receive one free attaching unlisted option for every two new shares subscribed for and issued. Each option will entitle the holder to subscribe for one fully paid ordinary share at an exercise price of $0.20, expiring on 31 December 2027. The issue of attaching Options associated with the placement is subject to Dataworks Shareholder approval, while those associated with the entitlement offer will be issued in accordance with applicable ASX Listing Rule exceptions for pro-rata offers.

Use of Funds

The company stated that funds raised will be used to strengthen its Balance Sheet and Working Capital position, support mobilisation and delivery of government programs, fund commercial execution across its domestic and international opportunity pipeline, and selectively invest in continued platform and product development. Proceeds are expected to be applied toward balance sheet strengthening including Debt repayment, government contract mobilisation and delivery, commercial execution, platform and product investment, and capital raising costs, with the precise allocation subject to variation depending on the final amount raised and the progression of commercial opportunities.

Management Commentary

Dataworks Executive Chairman Julian Babarczy said the company enters this capital raising from a materially stronger operating position than in previous years, noting that it now operates regulatory technology platforms for government customers in Australia and Canada, generated positive Operating Cash Flow in FY26, and holds a pipeline of additional opportunities under active development. He said the raising is intended to strengthen the company's balance sheet and provide operating flexibility to execute on that opportunity set, funding debt repayment, commercial scale-up, contract mobilisation and general working capital while maintaining disciplined cost control.

Business Context

The company noted that during FY26 it delivered 24% growth in operating revenue, generated positive operating cash flow, and launched its second government platform in Ontario, Canada. Dataworks also recently commenced a previously announced paid Planning Services Agreement with the NSW Government. The company stated that its underlying technology platform is already developed and operating at scale, with the additional capital principally intended to support commercial execution, contract mobilisation and growth rather than the development of a new core technology platform.

Capital Raising Management

Cygnet Capital Pty Limited has been appointed Lead Manager to the placement, with Taylor Collison Limited appointed Co-Manager. The managers will receive an aggregate cash fee of 6% of funds raised under the Capital Raising, comprising a 4% selling fee and a 2% management fee, exclusive of GST, and may also receive up to 5,000,000 management options subject to shareholder approval.

Investment Considerations

The placement is not underwritten, and the entitlement offer will similarly not be underwritten and carries no minimum subscription condition, meaning the ultimate amount raised will depend on the level of investor and shareholder participation. The issue price represents a discount to both the last traded price and the recent volume weighted average price, which shareholders not participating in the offer should be aware of in the context of potential dilution. Any shortfall securities not taken up by eligible shareholders may be allocated to other investors at the Board's discretion, subject to relevant regulatory limits.

Conclusion

The $4.24 million capital raising is designed to strengthen Dataworks' balance sheet and provide funding flexibility as the company works to mobilise its government contracts and pursue further domestic and international opportunities. With the company's core technology platforms already operating at scale, management has characterised the additional capital as being directed primarily toward commercial execution and growth rather than new platform development, with the ultimate outcome of the raising to be determined by investor and shareholder take-up.