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Buddy Technologies (ASX:BUD) - CEO, David McLauchlan - The Market Herald
CEO, David McLauchlan
Source: Anthill Magazine
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  • Smart tech company Buddy Technologies (BUD) has received firm commitments to undertake a $13 million placement
  • All up, 271 million fully paid ordinary shares will be issued to institutional and sophisticated investors and shareholders at 4.8 cents
  • Subject to shareholder approval, three board members will participate, potentially subscribing for more than 3.6 million shares
  • Buddy will use the money to support growth, pay its outstanding vendor debt, and support additional manufacturing of its Lifx smart lights
  • Company shares are down 3.57 per cent, trading for 5.4 cents each

Buddy Technologies (BUD) has received firm commitments to undertake a $13 million placement.

The smart home solutions provider entered a trading halt at the beginning of the week, but not disclose how much it intended to raise or what it would use the funds for.

All up, 271 million fully paid ordinary shares will be issued to institutional and sophisticated investors and shareholders at 4.8 cents.

This price represents a 14.3 per cent discount to Buddy's last 5.6 cent closing price on November 6.

Subject to shareholder approval, Non Executive Chairman Rick Borenstein, CEO and Executive Director David McLauchlan, and Non Executive Director Rosey Batt will participate in the placement, potentially subscribing for a combined 3,666,667 shares.

Buddy will use the money to support growth, pay its outstanding vendor debt, and to support additional manufacturing of its Lifx smart lights.

"In considering this placement, the board and our management thought very carefully about finding the right balance between additional funds that could be spent on inventory and turned into tip line revenue reasonably quickly," David said.

"With the completion of this placement and the fast-approaching financial close of the PFG facility, the company has removed all major barriers to success. We can't wait to deliver on, and even exceed, our customer's expectation as we continue to restock our retail partners around the world," he added.

Buddy is down 3.57 per cent on the market and shares are trading for 5.4 cents each at 1:13 pm AEDT.

BUD by the numbers
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