The company also raised $800,000 from 90 people through the Birchal equity crowdfunding platform in 2019, giving it a pre-funding valuation of $35 million.
Alta Global operates a technology platform that allows gyms to run a variety of mixed martial arts and combat sports training programs, including Alta's Warrior Training Program, UFC Fight Fit, and Alta Academy.
Impact of COVID-19
The company told shareholders last year that it needed to raise more capital after its revenue took a hit due to the coronavirus, with gyms offering training programs forced to close during the prolonged lockdown.
After reporting operating losses of $20.6 million and $11.2 million in the 2023 and 2022 financial years, Alta said in its financial statements and prospectus filed with ASIC that “its ability to continue as a going concern is in serious doubt.'' ” he revealed.
“Additional capital may be required to execute our business plans and continue operating our business.”
For the year ended June 30, 2023, Alta reported a loss of $13.7 million on revenue of $1.4 million.
In a statement provided to Australian Financial ReviewAlta said the group's loss for FY23 consisted of $3.7 million in cash and $9.9 million in non-cash charges, primarily due to costs related to convertible notes that were converted into ordinary shares on January 1. It later said that the increase was due to costs related to its Jan. 1 IPO. March 28th.
“Following the IPO and the conversion of existing convertible notes, the company has a debt-free balance sheet and is well capitalized to support our growth,” the company said.
“Since 2020, Alta has raised every capital round at a higher pre-money valuation than the previous round, and the IPO valuation of $45 million pre-money is the highest valuation the company has ever achieved. It has become.”
Birchal co-founder and CEO Matt Vitale said Alta's IPO was a “huge feat” and an important milestone for the crowdsourced funding (CSF) sector.
“As a high-growth technology company serving martial arts and martial arts gyms, Alta's success despite the pandemic and recent fundraising winter is a victory against the odds,” Vitale said.
“This is an important moment for the CSF industry as Alta's CSF shareholders have a clear path to liquidity for those who want it.”
Alta's existing shareholders, including CSF shareholders, are subject to a six-month lock-up period before they can sell their shares, while the company's founders, board of directors, and affiliates are subject to a 12-month lock-up period.
Prior to its IPO, Alta acquired the assets of Steppen, a Gen Z fitness app. The company previously raised $1.65 million from investors including Afterpay co-founder Anthony Eisen, Flying Fox Ventures, Launchvic's Alice Anderson Fund and Startmate. stock.
The company also acquired the assets of US-based independent MMA media company Mixed Martials Arts LLC in October for $250,000 in stock and $25,000 in cash.
The company hopes that by going public in the U.S., it will be able to tap into the more than 45,000 martial arts gyms and martial arts gyms across the country and gain exposure to U.S.-based investors familiar with the martial arts industry.
