TV2U International Ltd’s (ASX:TV2) shares have surged after receiving commitments of $1.94 million through a share placement to institutional, professional and sophisticated investors.
TV2U will issue 64.8 million new shares at $0.03 each and up to 32.4 million options at a nominal issue price, as part of the placement.
TV2U is an entertainment platform that enables businesses, such as telecos, to offer encrypted, streaming content to their customers along with targeted advertising.
The company will have a cash balance of $3.1 million after completing the oversubscribed placement.
The funds from the placement will be used for new hires for the research and development team, which will enable TV2U to pursue a number of short-term opportunities.
The balance will be applied towards working capital requirements.
Additionally, TV2U will offer one-for-four entitlement options to existing shareholders this month, exercisable at $0.04 on or before 30 March 2019.
In May, the company signed an agreement with Australian‐owned independent telecommunications services provider, Om Telecom, that all TV2U to sell its entertainment solution to a large market.
The share price of TV2U has increased more than 150% during the last one month.
The company had completed a $4 million capital raise and relisted on the ASX in February 2016, following the reverse takeover of Galicia Energy Corporation.
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