Linius Technologies (ASX:LNU) - Incoming CEO, James Brennan
Incoming CEO, James Brennan
Source: James Brennan / LinkedIn
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  • Linius Technologies (LNU) will raise up to $3 million in an equity placement to US-based institutional investor, New Technology Capital Group (NTCG)
  • Funds will be utilised to accelerate the commercialisation of the company’s existing products, deliver new annual recurring revenue, and for general working capital requirements
  • The placement will be made by way of NTCG prepaying the subscription price of shares to be issued
  • The company has already secured $2 million, with the other $1 million subject to shareholder approval
  • Shares are trading 5.88 per cent higher today at 1.8 cents each

Linius Technologies (LNU) will raise up to $3 million in an equity placement to US-based institutional investor, New Technology Capital Group (NTCG).

Funds will be utilised to accelerate the commercialisation of the company’s existing products, deliver new annual recurring revenue, and for general working capital requirements.

The placement will be made by way of NTCG prepaying the subscription price of shares to be issued.

The company has already secured $2 million, which is not subject to shareholder approval. The funds will be paid within the next week.

The initial issue price is 3.4 cents each, representing a 100 per cent premium to LNU shares on its last trading day.

The remaining $1 million is subject to shareholder approval and will be paid in the second tranche.

The issue price resets after 60 days to the average of the five-day volume-weighted average price, selected by NTCG during the 20 consecutive trading days prior to the date of NTCG’s notice to issue shares, less a 5 or 7 per cent discount.

The issue price is subject to an 1.1 cent price floor, which if reached, Linius may forego issuing shares and opt to repay the subscription amount in cash with a 5 per cent premium or allow NTCG the right to receive shares at that price.

Under the terms of the formal documentation, the company will initially issue 18.8 million shares to NTCG, which will be allocated towards the ultimate number of subscription shares to be issued. In addition, Linius will issue 8 million shares in satisfaction of a fee payable to NTCG.

Chief Executive Officer James Brennan said he believes the funding will assist growth of the company.

“I am delighted that New Technology Capital Group has taken an interest in Linius, our technology and our vision to grow our business,” he said.

“Our customers are experiencing strong growth in adoption of Linius solutions, and we have the new opportunities in our pipeline to grow ARR in the near term.

“The funding will allow me to execute my focused plan to accelerate the success of existing customers and convert current opportunities to revenue.”

Shares were trading 5.88 per cent higher today at 1.8 cents each at 1.05 pm AEDT.

LNU by the numbers
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