Join our daily newsletter At The Bell to receive exclusive market insights
- Linius (LNU) raises $4 million through a placement to fund commercialisation plans for its Video Virtualization Engine (VVE) technology
- Professional and sophisticated investors supported the raise with 200 million new shares to be issued at two cents each, representing a 4.7 per cent discount
- The placement also includes $400,000 from Linius directors, subject to shareholder approval
- The money is set to help drive revenue growth, focusing on converting existing clients and near-term opportunities to immediate and sustainable revenues
- Shares are trading 14.3 per cent higher at 2.4 cents at 3:59pm AEST
Linius (LNU) has raised $4 million through a placement to fund commercialisation plans for its Video Virtualization Engine (VVE) technology.
The company entered a trading halt on July 29, reporting it had been busy during the March period, developing, delivering and commercialising its video technology solutions across various sectors.
Now, in a statement, LNU said professional and sophisticated investors supported the raise which includes the issue of 200 million new shares at two cents each, representing a 4.7 per cent discount to the last closing price on July 28.
Additionally, the placement includes $400,000 from Linius directors, subject to shareholder approval.
CEO Chris Richardson said the company was “thrilled” with the level of support the capital raising received from existing and new shareholders.
VVE is available on Amazon Web Services, Microsoft Azure and IBM Cloud, companies which Linius said are investing billions of dollars in virtualising video services and artificial intelligence in the cloud.
Linius believes it has the potential to transform many multi-billion-dollar markets, with an initial focus on anti-piracy, search functions, security and defence and personalised advertising.
With a clear focus on commercialisation, the company said the raise will provide the “firepower” needed to execute its growth initiatives including further investment in Linius Video Services software as a service (SaaS) platform and increasing sales management resources.
The money is set to help drive revenue growth with the aim of converting existing clients and near-term opportunities to immediate and sustainable revenues.
LNU plans to expand its direct sales, pre-sales and client management teams in Australia and the UK, as well as invest in near-term marketing activity for its Saas products.
The placement, excluding director participation, is scheduled to settle on August 10, 2021.
Shares were trading 14.3 per cent higher at 2.4 cents at 3:59pm AEST.
