Linius Technologies Ltd (ASX:LNU) has received firm commitments from professional and sophisticated investors to raise $4.5 million in a placement to fund continuing operations and help deliver on its vision of making all the world’s video accessible as data.
The placement of more than 136 million fully paid ordinary shares at 3.3 cents per share received strong support from new investors together with existing shareholders, including the Kirby Family and Technical Investing.
It will include about $300,000 from the company's directors subject to shareholder approval, which will be sought at the company’s upcoming annual general meeting.
The placement will be conducted within the company’s existing Listing Rule 7.1 placement capacity for more than 127 million shares.
Commercialisation of Linius' technology and building, strong recurring revenue streams will occur as the company continues to:
- Invest in the cloud based Linius SaaS platform – Linius Video Services (LVS);
- Scale distribution through partnerships including Microsoft, AWS and IBM;
- Replicate solutions in key verticals including sports, news, security and defence, education and corporate communications;
- Further develop the SaaS marketplace 2here third parties invest and launch their own technology from;
- Invest in and secure further proof of concepts (POC’s) and more commercial deals such as the recent SportsHero and Racing.com agreements; and
- File new patents, trademarks and copyrights in line with the commercialisation strategy.
The company’s cash balance at June 30, 2019, was $2.3 million.
Expenditure in previous quarters has reflected accelerated costs as Linius built out the product for commercial deployment in replicable solutions, resulting in future deployments being more efficient to bring to market.
In addition, there were costs associated with the restructure of the company’s engineering function.
These efficiencies will be reflected in reduced overall expenditure for the current quarter.
The company is also generating revenue through commercial deployment of its technology and expects revenue to grow during the current financial year.