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Linius raises $4m in growth capital

Linius Technologies has announced it has received firm commitments from investors to raise $4 million, before costs.

user icon Nastasha Tupas
Mon, 02 Aug 2021
Linius raises $4m in growth capital
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The additional capital is designed to boost Linius’ growth strategy towards full commercialisation of its Video Virtualization Engine (VVE) technology – a cloud-based solution that transforms static video into hyper-personalised video experiences.

The placement received strong support from new institutional shareholders as well as continued support from existing shareholders, and includes $400,000 committed by Linius directors, subject to shareholder approval, which will be sought at a general meeting of shareholders to be held as soon as practicable.

The investments will lay the groundwork for an expanded client list and enlarged revenue base, as products utilising the company’s unique VVE technology gain traction in its target market segments of education, sports and video conferences, according to Chris Richardson, Linius Technologies CEO.

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“We are thrilled with the level of support the capital raising received, both from existing and some new institutional shareholders coming on board," he said.

"The additional $4 million in capital these investors have provided gives Linius the firepower needed to execute its growth initiatives.

"This includes further investment in the Linius Video Services (LVS) SaaS platform and bulking up our sales management resources."

Proceeds under the placement will be allocated to driving revenue growth with a specific focus on converting existing clients and near-term opportunities to immediate and sustainable revenues, using case studies of successful deployments to accelerate the near-term pipeline in the education, video conference and sport sectors.

Linius is also aiming to expand its direct sales, pre-sales and client management teams in Australia and the UK, invest in near-term marketing activity for its SaaS products, continue investment in the development of Linius Video Services (LVS) SaaS platform, along with Linius Whizzard and Sports sector products, as well as to strengthen Linius’ integrations and partner relationships with AWS, Zoom, Microsoft and learning management system providers.

The issue price under the placement is $0.02 per new share, and will result in the issue of 200,000,000 fully paid ordinary shares at $0.02 per. The placement will be conducted within the company’s existing Listing Rule 7.1 placement capacity for 180,000,000 shares and the balance pursuant to shareholder approval under Listing Rule in respect of the shares for directors.

The issue price represents a discount of 4.7 per cent to the last closing price on ASX of $0.021 on 28 July 2021 and 12.7 per cent to the 15-day volume-weighted average price of shares on ASX.

The placement (excluding director participation) is scheduled to settle on 10 August 2021 with allotment on 11 August 2021.

CC Equities acted as lead manager for the placement.

[Related: Top spy chief says PRC government helped cyber criminals with Microsoft Exchange hack to parliamentary inquiry]

Nastasha Tupas

Nastasha Tupas

Nastasha is a Journalist at Momentum Media, she reports extensively across veterans affairs, cyber security and geopolitics in the Indo-Pacific. She is a co-author of a book titled The Stories Women Journalists Tell, published by Penguin Random House. Previously, she was a Content Producer at Verizon Media, a Digital Producer for Yahoo! and Channel 7, a Digital Journalist at Sky News Australia, as well as a Website Manager and Digital Producer at SBS Australia. Nastasha started her career in media as a Video Producer and Digital News Presenter at News Corp Australia.

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