One of the hottest retail stocks on the ASX with gains of more than 300% over the past year, Harris Technology (ASX: HT8) is showing no signs of slowing down with investors rushing to fund further growth as HT8 successfully completed an oversubscribed $5 million capital raise.
The funding was supported by institutional and professional investors and will enable Harris Technology with working capital to expand their warehouse facility and acquire more inventory.
“This capital raise will provide the funding for our next growth phase. We have recently increased our warehouse facilities to accommodate larger inventory volumes and expansion into new product categories,” said Harris Technology CEO, Garrison Huang.
“The rise in online shopping that was initially brought upon by the global pandemic has not slowed down and has in fact increased. This additional working capital will enable us to scale our buying power, turn over larger inventory volumes resulting total increased shareholder return in the coming months.”
As a pure-play online retailer, Harris Technology has been capitalising on the rise in eCommerce which was initially brought upon by pandemic lockdowns, but has continued to grow despite the re-opening of brick-and-mortar retailers. This trend has driven Australians en masse to websites like Amazon, eBay, Catch and Kogan where Harris Technology is one of the biggest marketplace tech sellers without a single physical retail shopfront.
By utilising these online marketplaces and marketing prowess, Harris Technology is able to capitalise on web traffic from those well-known sites and have pre-empted various market trends over the past year to shore up supply when the market is facing severe shortages.
This agile approach to buying, marketing and distribution drove $10.4 million (unaudited) in sales revenue for the March quarter which represented a 206% increase from $3.4m in the same quarter last year.
Harris Technology’s entry into gaming has yielded a handsome return. Due to its long-standing relationships with a network of global vendors, while Bitcoin was trading at all-time highs, the Company was able to secure an impressive supply of high-end graphics cards traditionally used for high-end PC gaming. This was just another example of how the Company has a major advantage of spotting and catching the trend when opportunities present.
The bumper result took their Year-to-Date revenue beyond $30m (unaudited) which represents a 300% increase over the previous corresponding period of $7.48m.
Harris Technology has expanded to a third warehouse in Victoria, just three months after they expanded to their second one. The additional capacity will enable Harris to scale its buying power while also expanding its product portfolio in the Gaming and other categories.
The $5 million was raised from institutional and professional investors at an Offer Price of $0.125. HT8 shareholders have enjoyed a fruitful 12 months with shares having traded at just $0.04 on this day last year.
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*Owners of this website are HT8 shareholders and participated in the Placement