- Atomos (AMS) is raising $18 million to fund a 20 per cent investment in UK-based video streaming company MAVIS Broadcast
- The company is raising $5.2 million through an institutional placement of 52.4 million shares at 10 cents each, and a 4-for-7 entitlement offer to raise the other $12.7 million
- Atomos will use £2 million (A$3.6 million) to acquire 20 per cent of MAVIS and leverage its technology for content creators
- The funds are also being used for marketing new revenue streams, sensor commercialisation, debt reduction and balance sheet flexibility
- AMS shares are in a trading halt which is expected to be lifted by October 20. The company last traded at 15 cents on October 17
Atomos (AMS) has launched an $18 million capital raise through an institutional placement and non-renounceable entitlement offer.
Under the $5.2 million placement, the global video technology company will issue 52.4 million shares to selected institutional investors at 10 cents each.
The offer price represents a 33.3 per cent discount to Atomos’ last closing price of 15 cents and a 33.9 per cent discount to the five-day volume-weighted average price of 15.1 cents.
The other $12.7 million will be raised through a 4-for-7 accelerated entitlement offer of roughly 127.1 million shares to eligible shareholders. The offer comprises an institutional and retail component.
Atomos’ non-executive directors have reportedly committed to subscribing for up to $116,689 in the entitlement offer.
The company will use the money to invest £2 million (A$3.6 million) in video streaming technology company MAVIS Broadcast, as well as for marketing new revenue streams, sensor commercialisation, debt reduction and balance sheet flexibility.
Atomos will gain a 20 per cent stake in the UK-based company and also has pre-emptive rights on an additional investment in MAVIS for five years.
AMS CEO Trevor Elbourne said Atomos’ Cloud Studio products leverage MAVIS’ technology and, when paired with the new Series 2 products, represent a “game-changer” for content creators.
“We have been partnering with MAVIS on these solutions for the last two years and have nothing but respect for the MAVIS team and the truly unique technology they have developed,” Mr Elbourne said.
Atomos is eager to take the partnership to the next level with its 20 per cent stake in the business.
AMS shares are in a trading halt which is expected to be lifted by Thursday, October 20. The company last traded at 15 cents on October 17.