The placement will be followed by a rights issue to raise about $2.65 million from existing and new shareholders on the same terms.
The Knosys KnowledgeIQ platform is a knowledge management solution that enables companies to deliver personalised information to staff and customers through a machine learning approach to transform productivity and engagement.
Accelerating investments to drive revenue growth
Knosys will use the funds raised from the placement to repay the holders of convertible notes maturing on 31 May 2018.
Funds raised in the subsequent rights issue will be used to accelerate investment in the company’s sales and marketing teams in order to drive APAC customer and revenue growth.
Singtel and its Australian subsidiary Singtel Optus recently entered into an agreement with Knosys for the deployment of the Knosys knowledge management platform KnowledgeIQ.
The multi-year contract is valued at more than $6.1 million and will span five years and three years respectively for Singtel and Optus.
Pursuing additional business development opportunities
Knosys chief executive officer John Thompson said: “The funds raised from this capital raising will enable the company to exploit its recent successful contract announcements with Singtel and Optus by recruiting additional business development and marketing employees.
“We will also commence a broader digital marketing campaign and sponsorship of industry conferences during the year to build brand awareness of Knosys.”