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- Video tech company Atomos (AMS) has successfully completed an oversubscribed $10 million placement by raising $10.9 million
- Approximately 24.3 million shares were issued to sophisticated and professional investors at a price of 45 cents per share
- The money will be used to support Atomos’ delivery of its planned products post COVID-19, fund its product expansion, and act as a buffer against any COVID-19 shockwaves
- Once the placement has been completed, Atomos will offer shareholders the ability to take part in a share purchase plan to raise an additional $1.7 million
- Eligible shareholders will be able to purchase up to $30,000 worth of shares
- Non-Executive Director Chris Tait has also been appointed Executive Chairman after working closely with the company over the past few months
- Atomos has ended the day 16.1 per cent in the red with shares trading for 57.5 cents each
Video tech company Atomos (AMS) has successfully completed an oversubscribed $10 million placement by raising $10.9 million.
Approximately 24.3 million shares were issued to sophisticated and professional investors at a price of 45 cents per share.
This prove represents a 34.3 per cent discount to the closing price on May 11 of 68.5 cents, or a 26 per cent discount to the five-day volume weighted average price of Atomos shares on, and up to, May 11 of $0.608.
The money will be used to support Atomos’ delivery of its planned products post COVID-19, fund its product expansion, and act as a buffer against any COVID-19 shockwaves.
Shares will be allocated on May 20 and can begin trading on the market on the same day.
Once the placement has been completed, Atomos will offer shareholders the ability to take part in a share purchase plan to raise an additional $1.7 million.
Eligible shareholders will be able to purchase up to $30,000 worth of shares.
Atomos has the right to scale back applications or close the share purchase plan if demand exceeds more than $1.7 million.
The share purchase plan will open on May 25, close on June 12, and shares will be issued on June 19.
COVID-19 update
Atomos was quick to respond to the rapidly changing market conditions due to COVID-19 and removed a number of costs. These measures have reduced monthly spending by approximately 60 per cent.
As a result of this, the company is now well-positioned to withstand the crisis.
However, once the market returns to normal, Atomos is expected to keep a number of these cost saving measures in place.
Both revenue and pro forma EBITDA (earnings before interest, taxes, depreciation and amortisation) were up 35 per cent to $32.6 million and $1 million respectively.
Despite all this good news however, Atomos’ video production offerings have significantly decreased due to large events such as weddings, concerts, social gathering and sporting events having been cancelled.
Non-Executive Director Chris Tait has been working extremely closely with the company over the past few months and because of this he has agreed to move into the role of Executive Chairman to lead the company.
“This has been a testing time for Atomos. We have seen a substantial fall in sales as a result of COVID-19 and the executive management team and all our staff have responded appropriately,” Chris stated.
“We expect that when the government restrictions are lifted globally, not only will our sales return over time, but we will benefit from a lower cost base and new product launches in line with our overarching strategy,” he said.
“The additional funds raised will enable us to execute on this strategy and to come out of COVID-19 as a more cost-effective company,” he added.
Atomos has ended the day 16.1 per cent in the red with shares trading for 57.5 cents each in a $127.8 million market cap.
