KneoMedia (ASX:KNM) raises $2m for new sales contracts

• Online education publisher KneoMedia (KNM) successfully raises just over $2 million via a share placement
• The funds were raised through the issue of around 166 million fully-paid ordinary shares to participants at 1.25 cents
• Subject to shareholder approval, the participants will receive one free attaching option for every two placement shares, exercisable at 2.5 cents with expiry on December 31, 2023
• KneoMedia will use the money to underpin the anticipated deployment of new sales contracts in the United States, primarily in New York
• KneoMedia ends the day 3.57 per cent in the red with shares trading at 1.4 cents

Online education publisher KneoMedia (KNM) has successfully raised just over $2 million via a share placement.

The company entered a trading halt on February 18 but did not disclose how much it intended to raise or what it would use the funds for once received.

The funds were raised through the issue of around 166 million fully-paid ordinary shares to participants at 1.25 cents.

This price represents a 16 per cent discount to KneoMedia’s five-day volume-weighted average price.

Subject to shareholder approval, the participants will receive one free attaching option for every two placement shares, exercisable at 2.5 cents with expiry on December 31, 2023.

KneoMedia will use the money to underpin the anticipated deployment of new sales contracts in the United States, primarily in New York.

The company will keep the market updated as new sales are secured and developments are made.

“We are delighted with the support we have received for this placement from new and existing investors that recognise the potential for our technology in the United States where we are making solid inroads,” CEO James Kellett said.

“We are particularly encouraged by the opportunities available to us and the ‘Connect All Kids’ participants in New York City where KneoWorld is delivering excellent educational outcomes and gaining serious traction and visibility.”

KneoMedia has ended the day 3.57 per cent in the red with shares trading at 1.4 cents for a $15.72 million market cap.