SenSen Networks Ltd (ASX:SNS) (OTCMKTS:SNNSF) has raised A$7.15 million through a well-supported placement to institutional and sophisticated investors to fund its strategic business plan to accelerate revenue and enhance its delivery capabilities to its global customers, especially in the US.
As part of the capital raising, SenSen welcomes high-conviction global equities fund manager VGI Partners Asian Investments Limited Fund (ASX:VG8) as a new substantial shareholder.
The leading smart cities and artificial intelligence solutions provider will now kick-off recruitment for senior international, marketing and sales, and project management executives to join its team to execute its expansion plan.
"Rapidly grow revenue profile"
SenSen chief executive officer Dr Subhash Challa said: “Following a strong 2020 growth year for the company despite the global effects of COVID-19, this capital raising means we are now extremely well-positioned to execute aggressive expansion plans in 2021 and beyond.
“SenSen is delighted to welcome global equities manager VGI Partners to the company.
“The fund’s focus on investing in businesses with a competitive advantage for the long-term clearly aligns with SenSen’s strategic plans.
“Similarly, we are delighted to enter a new phase of institutional and sophisticated investor support for the company as we aggressively pursue expansion in our target markets and rapidly grow our revenue profile especially in the US.”
SenSen issued 57.2 million new fully paid ordinary shares at A$0.125 per share on January 5, 2021.
This issue price represents a discount of 9.29% to the 30-day volume-weighted average price (VWAP) of SenSen shares.
The allotment of the placement shares will be issued within SenSen's 15% placement capacity under ASX Listing Rule 7.1.
This placement was not underwritten and placement shares will rank equally with existing fully paid shares in SenSen.
Use of funds
The funds raised will be used to add new key executives in sales & marketing and project management, as well as for marketing and business development management initiatives.
They will also allow the company to extend its cost of goods sold (COGS) inventory for rapid project deployment and very importantly, provide additional funds for ongoing research & development and technology development to maintain and enhance SenSen’s leading position in its business segments