Innovative, scalable technology offering with a strong track record - FADEL's award-winning enterprise-ready cloud software provides solutions for content and IP creators (licensors) and content and IP users (licensees). Its system is built on a highly scalable architecture. Its customers have complex needs, with the IPM software helping, inter alia, to manage and process complex contracts and licensing requirements and Brand Vision helping marketers/licensees to accelerate their digital strategy to allow them to manage, inter alia, large volumes of content and associated usage rights.

Blue chip and loyal customer base - The Group has a blue-chip customer base, with customers such as Pearson, L'Oréal, Hachette Livre and Marvel Entertainment. Its customers include some of the largest licensors who drive significant licensing revenue as well as three of the "big five" French publishers. Through IPM Suite, FADEL's larger customers have achieved significant ROI from cost efficiencies and licensing revenue growth opportunities not available using legacy solutions. As a result, the Group has reported exceptionally low churn in customers using IPM Suite following the implementation phase, to date.

Established sales and marketing strategy - The Group has an established direct and indirect sales strategy. The Group has salespersons in the US, UK and France. Indirect sales are through the Group's established partnership and reseller arrangements. In respect of marketing, FADEL is considered as a thought-leader in its field - representatives from the Company regularly attend leadership events and are active research contributors and its employees sit on relevant industry boards, such as the BISG. These marketing efforts contribute to general market awareness of FADEL and its solutions.

Strategically positioned to capture market growth - There is fundamental growth in digital content and IP (across industries, geographies and channels) and therefore a growing requirement for solutions to manage this digital content and IP. In the rights and royalty ecosystem (which IPM Suite addresses), a significant proportion of companies are still using more traditional spreadsheet-based methods of managing licenses and royalty calculations, typically using large teams and sometimes legacy royalty systems that are no longer 'fit for purpose'. The digital brand compliance marketplace (which Brand Vision addresses) is still relatively nascent and highly fragmented, with a vast number of large brands bringing their content creation and digital agency function in-house. As companies implement digital transformation strategies, the ROI on an enterprise solution like FADEL is becoming more apparent.

Established low-cost but highly skilled offshore R&D and delivery centre in Lebanon - The Group has operated its own offshore R&D and delivery centre in Beirut, Lebanon since 2006. In doing so, the Group benefits from the high level of education in that country, including Engineering and Business majors, the multi-lingual capabilities of the employees and low cost and low attrition attained by operating in Lebanon. This has proven to be a strategic competitive differentiator for the Company allowing it to expand its product and service offerings while maintaining high customer satisfaction at low operating costs.

Highly experienced and well-connected Board -The FADEL Board, both Executive and Non-Executive, is constituted of prominent and experienced figures in the industry including founder and CEO Tarek Fadel and CFO Vicary Gibbs. The FADEL Board has collective experience in high growth software environments, alongside strong industry relations. The Directors believe that this will enable FADEL to pursue its growth strategy and ensure strong origination for new opportunities. Additionally, between them the Board has public market experience of both AIM and other exchanges.

Strong financial record with scalable revenue model - In the twelve-month period ended 31 December 2021, FADEL generated revenue of $12.0 million (31 December 2020: $7.8 million) of which 54 per cent. was recurring. Year-on-year revenue growth was 53 per cent, with a two-year CAGR of 50 per cent. In the six-month period ended 30 June 2022, FADEL generated revenue of $6.7 million, of which 62 per cent. was recurring. At the core of the revenue model is a SaaS platform generating subscription revenue. IPM Suite, which sits as the foundation of the business, typically has large contract values of which a significant amount is related to services, whilst the service revenue is non-recurring in nature, the integration complexity results in defensive revenue. Brand Vision, which has grown out of the acquisition of IDS in FY 21 has diversified our product revenue. Going forward, the Company expects to see a higher proportion of subscription revenue coming from Brand Vision, where its products can be deployed quickly with limited integration requirements and lower implementation costs. The Directors believe that the Company has a defensible revenue with significant upside potential.

Strong current trading - Revenue for the six month period from 30 June 2022 was $6.5 million¹, resulting in expected revenue for FY 22 of $13.1 million¹ (unaudited management information). This was a 10.1 per cent. year-on-year increase (FY 21: $12.0 million), notwithstanding foreign exchange headwinds the global economic environment. In respect of recurring revenue, there was 34 per cent. year-on-year growth (Subscription and support: $8.7 million, unaudited, FY 21: $6.5 million) with a significant contribution from subscription sales in Brand Vision, including a full financial year's contribution from IDS.

A clear growth strategy - The Group intends to use the proceeds to pursue its organic growth strategy to expand its business and the breadth of its operations, hire additional employees, expand into new markets, further invest in research and development and sales and marketing, and incur costs associated with general administration (including expenses related to being a listed company).