- Dotz Nano shares are down 22.78 per cent today following a $1 million share placement to fund product commercialisation
- Dotz creates carbon-based nano materials for tracing, anti-counterfeiting and authentication
- Funds will be used to support commercialisation activities in the fuel and fracking industries, and to take advantage of opportunities in the lubricants, cannabis and plastics sector
- Dotz shares currently trade for 6.1 cents each in a $13.31 million market cap
Dotz Nano has seen shares drop more than 20 per cent today following a $1 million share placement to fund product commercialisation.
Dotz develops and manufactures carbon-based materials for tracing, anti-counterfeiting and authentication. The materials designed by Dotz can be imbedded into other products to create unique product-specific codes, which can then be traced and tracked to determine a product’s place of origin.
The $1 million share placement will be used to support Dotz’ recent commercialisation activities for these products.
According to Dotz, this includes finalising agreements with potential customers in the fuel and fracking industries, and taking advantage of opportunities in the lubricants, cannabis and plastics sector. The funds will also support research and development activities.
As part of the placement, Dotz will issue roughly $16 million new shares at 6.2 cents each — a discount of more than 20 per cent to the company’s last closing price of 7.9 cents per share. With each share comes a one-for-two attaching unlisted option, exercisable at 9 cents each within two years.
Dotz CEO Uzi Breier said the placement will support the company’s go-to-market strategy.
“While Dotz has made significant progress by focusing on end-customers in three main market segments, sales in the advanced materials sector take time,” he said.
Uzi said pilots and proof of concepts — which are a standard practise in Dotz’ target markets‚ require specific customisation activities.
“We remain focused on converting these customisation activities to sales and I’m confident that we will be able to announce new sales in the near future,” he said.
The Dotz nano technology can be imbedded into a range of both solid and liquid materials without affecting the chemical properties or the appearance of the product. Uzi said this solves real-world challenges for manufacturers, who often need verifiable ways to authenticate their products throughout the supply chain.
Dotz shares are down 22.78 per cent as at 12:08pm AEST, trading for 6.1 cents each in a $13.31 million market cap.