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- Linius Technologies (LNU) gets firm commitments to raise $2 million through a placement
- Around 200 million shares will be issued to professional and sophisticated investors at one cent each, representing a 16.7 per cent discount to the last closing price
- The company says the money will help to accelerate growth, deliver new annual recurring revenue and to support general working capital
- Company shares are trading down 8.33 per cent at 1.1 cents
Linius Technologies (LNU) has received firm commitments from professional and sophisticated investors to raise $2 million.
The capital raise will be in the form of a placement that will issue 200 million shares priced at one cent each. The issue price represents a 16.7 per cent discount to the last closing price and 12.1 per cent to the 15-day volume-weighted average price.
Linius said it received strong support from new institutional shareholders as well as continued support from existing shareholders.
The placement also includes a $350,000 commitment from Linius directors, subject to shareholder approval, which will be sought at a general meeting.
Linius Technologies will use the money to accelerate product growth, drive the delivery of new annual recurring revenue from existing customers and new business pipeline, and for general working capital.
The tech stock is focused on re-defining the video market, transforming the way the world watches video content and creating value through personalised content.
Its patented Video Virtualisation Engine (VVE) turns bulky video files into lightweight, searchable data that is enriched with artificial intelligence and machine learning to make it easy and efficient for users to find and share valuable content.
The placement (excluding director participation) is scheduled to settle on May 6 and new shares will be allocated on May 9.
Company shares were down 8.33 per cent and trading at 1.1 cents at market close.
