This ASX small-cap star just jumped 30% today. Here’s why

One ASX small cap is firmly back on investors’ radars today after releasing another market update just days after a blockbuster announcement.

At the time of writing, shares in Rocketboots Ltd (ASX: ROC) are trading at 34.5 cents, up 30.19%. This comes as investors digest news of a newly completed capital raise tied directly to its global expansion plans.

The update follows last week’s contract win, and suggests the market is now shifting its attention to what comes next.

Funding the next phase of growth

This morning, the company announced it has received firm commitments to raise $7 million via a placement priced at 25 cents per share.

The raise was supported by a mix of new and existing sophisticated investors, including several institutions entering the register for the first time.

While capital raisings can sometimes weigh on sentiment, the share price response suggests investors see this one as a positive step.

How the funds will be used

The funds will support international expansion and provide working capital as the company scales to service current and future customer contracts.

The additional capital will also be used to scale the platform and support the rollout of the recently announced global contract, while backing other enterprise customers already deep in the sales funnel.

Why investors are still paying attention

The placement comes just days after the company revealed a multi-year global deal expected to deliver around $9.1 million in annual recurring revenue (ARR), more than 10 times its existing ARR base.

Even after landing that contract, management has indicated it represents less than 10% of the company’s advanced sales pipeline.

With fresh capital in place, investors appear increasingly comfortable that the company can support multiple large customers simultaneously.

This also reduces balance sheet risk and gives the company flexibility to pursue additional opportunities.

The bigger picture

The company operates in AI-driven retail loss prevention. Rising shrinkage and labour pressure are pushing retailers to adopt scalable solutions as self-checkout expands. These trends provide a supportive backdrop for the business and continue to drive interest from especially large, global customers.

Together, the recent contract win and capital raise suggest the company is entering a new phase of growth.

Foolish Takeaway

For investors comfortable with small-cap risk, this update reinforces the momentum building behind the business. The combination of a major contract win and fresh funding improves visibility around the company’s near-term execution. After today’s move, this remains a stock I’ll be watching closely from here.

The post This ASX small-cap star just jumped 30% today. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.