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Dotz Nano (ASX:DTZ) secures over $7M to accelerate growth momentum

Technology
ASX:DTZ      MCAP $49.80M
19 October 2020 18:45 (AEDT)

Authentication and tracing solutions company Dotz Nano (DTZ) has received commitments from sophisticated and institutional investors to raise $7.07 million via a placement.

The money will allow the company to fulfil its four existing PPE authentication contracts and establish new distribution networks for its products. Funds will also be used for sales and marketing activities and proof of concept costs for new business including the commercialisation of Dotz’s surface sanitation and onsite virus detection.

The strongly supported placement will issue over 28 million shares at a price of 25 cents, representing a 3.8 per cent discount to the 30-day volume weighted average price.

The company’s biggest shareholder, Southern Israel Bridge Fund, has committed $750,000 and directors will chip in $150,000 — subject to shareholder approval at a yet-to-be-announced extraordinary general meeting.

Dotz Chairman and interim CEO Bernie Brookes said the boost in funds will help push the company forward.

“We are now well-funded to increase production capacity to meet our obligations under existing long-term contracts, as well as accelerate our next growth phase within the broader anti-counterfeiting and authentication sectors,” he said.

“Our recent sales success in PPE authentication verifies the value of our end-to-end authentication technology in protecting the reputation of high-quality products throughout global supply chains,” the interim CEO continued.

Shares in Dotz Nano closed 3.45 per cent lower, priced at 28 cents.

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