Digital Caddies, Inc. receives $2.7M in funding
Digital Caddies Inc. announced they received a total of $2.7 million of funding on the previously announced equity capital raise being completed by Paulson Investments – a boutique investment bank specializing in the small and mid-sized markets. Funds raised are being used to continue the growth and development of its personal concierge service, The Players Network.
Digital Caddies launched The Player’s Network in late 2013 – a tablet based course navigation and content platform installed on golf carts. To date the system has been installed on approximately 5000 golf carts on over 60 golf courses across the country. Back in October of 2013, AZ Tech Beat covered the story of the new deal inked by Digital Caddies and Scottsdale’s Troon North Golf Course. With this new raise in capital, Digital Caddies plans to expand to 80 more golf courses in the 2014 year.
On March 4th, 2014 the company announced that the network was generating advertising impression inventory at a run rate of over 100 million per month, which far exceeds management’s initial expectations. This better than expected performance, immediately resulted in the announcements of agreements with many premium 3rd party advertising networks who are working with Digital Caddies to fill the ad space with premium ad units and drive meaningful revenue through The Players Network.
The Player’s Network – a.k.a. the digital concierge – provides the player’s course information, track their score, and even request a beverage cart; it also serves as a network for national to local advertisers to reach their target audience.
The offering was priced at $0.80 per Unit and consists of (i) 4 common shares of stock and (ii) 2 common stock purchase warrants. Each warrant is exercisable for one common share at $0.40 per share with a 5-year term.
Michael Loustalot, President of Digital Caddies, said, “This new capital will help accelerate our installation into our new markets and golf courses.” Digital Caddies has a presence in Arizona, Nevada, California, Texas, South Carolina, Georgia, and Florida and plans to expand in these markets, as well as new markets in New York, Connecticut, Massachusetts, Pennsylvania, and Virginia.