The placement was strongly supported by new institutional shareholders as well as existing shareholders.
It includes an investment of around $210,000 from Linius directors, subject to shareholders’ approval that will be sought at an upcoming general meeting of shareholders.
Linius’ specific focus following the placement is on converting existing clients and near-term opportunities to immediate and sustainable revenues.
Use of proceeds
Linius is the backbone OEM provider for such solutions, and because of the current pandemic video conferencing has become a critical requirement, enabling working from home and business continuity planning strategies.
In this regard, placement funds will be used to:
- Assist LiveTiles in selling their Intelligent Meeting Solution of which Linius is the backbone OEM provider;
- Continue to develop the AI Meeting Solution, with integrations with Webex and Zoom; and
- Promote the solution into the global video conferencing market which, with its millions of users represents a significant opportunity for Linius.
The company believes the video conferencing market with its AI meeting solution represents the fastest path to material recurring revenue growth and these funds will provide the company with an additional runway to execute this strategy and drive revenues.
Linius believes it has the technology suite in place, with the IP protected by granted patents, to deliver this growth.
Previous client wins in the sports market, that have been impacted by COVID 19, are expected to deliver revenues as live sport recommences, along with revenues associated with its news solution as this is deployed.
The company plans to issue 178.57 million ordinary shares at 2.8 cents per share as a result of the placement.
It will be conducted within the company’s existing placement capacity for 171.07 million shares while the remaining will be subscribed for by directors.
The issue price represents a discount of 15.2% to the last closing price before the trading halt and a 15% discount to the 15-day volume-weighted average price (VWAP).
The placement, excluding director participation, is scheduled to settle on September 30, 2020, with allotment on October 1, 2020.
Blue Ocean Equities Pty Limited acted as lead manager for the placement.