Zimi (ASX:ZMM) taps investors for $1.5m to fund growth

• Internet of Things company, Zimi (ZMM) has tapped investors for $1.5 million to accelerate sales and growth
• Over 19.1 million shares will be offered to sophisticated and institutional shareholders at 8 cents each, an 18.4 per cent discount to the five-day volume weighted average price
• Subject to shareholder approval, each placement share will include an attaching option exercisable at 12 cents each, expiring three years from the date of issue
• The capital raise follows the company’s June quarterly report which indicated ZMM ended the period with $2.6 million, representing 4.3 quarters of funding
• Emerging from a trading halt, ZMM shares dipped 5.26 per cent to trade at 9 cents each at 2:32m AEST

Australian Internet of Things company, Zimi (ZMM) has tapped investors for $1.5 million to accelerate sales and growth.

The company works to connect everyday electrical products to the internet, and each other to create “smarter” living and working spaces.

Its current product range includes the Powermesh and Senoa lines, which include multi-purpose switches, light dimmers, power points, fan controllers and garage door controllers.

In its June quarterly report, ZMM burnt through $622,000 on operating activities with the majority going toward research and development. It ended the period with around $1.6 million in cash, representing 4.3 quarters of funding if spending levels remained the same.

Now, the company revealed it will offer over 19.1 million shares to sophisticated and institutional shareholders at 8 cents each, marking an 18.4 per cent discount to the five-day volume weighted average price of 9.8 cents.

The placement will be split into two tranches with the first 12.9 million shares to be issued on August 15 to raise just over $1 million, and the remainder under the second tranche are subject to shareholder approval.

Each placement share will include an attaching option exercisable at 12 cents each, expiring three years from the date of issue.

Additionally, ZMM has a long-standing working relationship with the Gerard Family and within the placement, $350,000 of equity will be issued to a party associated with Simon Gerard for personnel, warehousing, quality assurance and logistic services to be provided to Zimi, in lieu of cash payments.

This is subject to shareholder approval, as is participation by a number of the company’s directors and the placement attaching options.

Zimi’s previous capital raise was in August 2021 when it raised $3.8 million.

Emerging from a trading halt, ZMM shares dipped 5.26 per cent to trade at 9 cents each at 2:32 pm AEST.