Investment in Zuuse

Zuuse is a Melbourne-based construction software vendor with significant operations in the UK, USA, Australia and New Zealand. In 2018, Primorus invested A$500k in a Series B loan note which was subsequently repaid in full with interest taken as 57,205 Zuuse shares. The Company also received 1m options to convert into Zuuse shares (on a 1:1 basis) at a conversion price of A$0.50 per option.

Following discussions with Zuuse, an opportunity was identified to invest alongside IFM as part of a funding package to accelerate growth. Following the recent capital raise, Primorus now holds 2,057,205 fully paid shares in Zuuse and 1m options, representing circa 1.7% per cent. of Zuuse’s fully diluted enlarged share capital.

Zuuse’s underlying construction payments software businesses continue to perform extremely well despite the challenges associated with the COVID-19 pandemic, with only a small dip in revenues in the Quarter to 30 June and has seen a renewed upward trajectory since. Revenues and EBITDA are on track to surpass those of FY 2019 whilst the platform itself processes in excess of US$2bn per month of construction invoices with that figure growing at a significant compound rate.

By investing now as part of a substantial growth accelerator financing, the Company gains significant exposure to a potentially high-growth, highly profitable business that is already scaling aggressively across the US, UK and Australasia. The deal also brings to the board of Zuuse an impressive group of finance and technology experts, notably Leigh Jasper. Zuuse exhibits many attributes that are desirous for technology investors and we believe our participation represents an outstanding opportunity on a risk-weighted basis for Primorus.

Through its sub-brand Zuuse Lifecycle, it services a significant number of assets across Australia and the UK including hospitals, universities, hotels, office blocks, bridges and sports stadiums. Through its Payapps and GC Pay Brands, Zuuse services small, medium and large construction companies as well as thousands of subcontractor groups and facilitates over A$12B in annualised payment values across its platforms.;;